> For the complete documentation index, see [llms.txt](https://docs.kaze.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kaze.fi/tigris/binary-options.md).

# Binary Options

Binary options allow the user to speculate on the short-term price action of an asset.

<figure><img src="/files/2d59hlCtCqCSgCZyHhEG" alt=""><figcaption></figcaption></figure>

The trade has a fixed duration which can be set from a minimum of 4 minutes to a maximum of 4 hours. \
If the options closes in the money, the payout is 70% of the collateral. \
If the options closes out of the money, all the collateral is lost.

There are no fees but a spread is applied to the opening price. All trades are executed instantly with guaranteed prices.

When an option is opened, 5% of the collateral value is distributed to stakers: 3.5% to TIG stakers and 1.5% to tigUSD stakers.\
The collateral from a losing option remains inside the trading vault and raises its collateralization.

Is possible to [refer](/tigris/referrals.md) traders to earn a percentage of their trading volume.


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