Bitcoin Options Trading Platform Smart Contract

A secure and decentralized platform for trading Bitcoin options with automated execution, collateral management, and price oracle integration built on Stacks blockchain.

Features

• Decentralized Options Trading: Create and trade Bitcoin CALL and PUT options
• Automated Execution: Smart contract handles option exercise and settlement
• Price Oracle Integration: Secure price feeds for option execution
• Collateral Management: Automated collateral locking and release
• Configurable Parameters: Adjustable platform fees and collateral ratios

Technical Overview

The platform consists of several key components:

• Option Creation: Users can create CALL or PUT options by specifying:
  • Strike price
  • Expiry (in blocks)
  • Option amount
  • Required collateral
• Price Oracle: Provides secure BTC price feeds for option execution
• Exercise Mechanism: Automated profit calculation and settlement
• Collateral System: Manages deposits and locked funds

Getting Started

Prerequisites

• Clarinet for local development
• Stacks Wallet for deployment and interaction
• Basic understanding of options trading and Clarity smart contracts

Installation

1. Clone the repository:

git clone https://github.com/abolore-install/bitcoin-options-trading-platform.git

2. Install dependencies:

clarinet requirements

3. Run tests:

clarinet test

Usage

Creating an Option

(contract-call? .bitcoin-options create-option "CALL" u45000 u1000 u10000)

Parameters:

• Option type: "CALL" or "PUT"
• Strike price (in sats)
• Expiry (in blocks)
• Amount (in sats)

Exercising an Option

(contract-call? .bitcoin-options exercise-option u0)

Parameter:

• Option ID

Expiring an Option

(contract-call? .bitcoin-options expire-option u0)

Parameter:

• Option ID

Architecture

Smart Contract Components

1. Data Storage

   • Options mapping
   • User balances
   • Oracle data

2. Core Functions

   • Option creation
   • Option exercise
   • Option expiration
   • Collateral management

3. Administrative Functions

   • Fee management
   • Oracle updates
   • Parameter configuration

Security Features

• Row-level security
• Collateral validation
• Price staleness checks
• Access control

Testing

The contract includes comprehensive test coverage:

clarinet test

Test suites cover:

• Option creation and validation
• Price oracle functionality
• Option exercise mechanics
• Administrative functions
• Error handling

Contributing

Please read CONTRIBUTING.md for details on our code of conduct and the process for submitting pull requests.

Security

For security concerns, please review our SECURITY.md file.

License

This project is licensed under the MIT License - see LICENSE.md for details.

Documentation

Detailed documentation is available in the docs directory.