> 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="https://2808992689-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAE1MpN6HvVL853xsqgiO%2Fuploads%2Fw35ZUvlVcENY6hKdevQK%2Fimage.png?alt=media&amp;token=f274ca9e-e13f-41a2-bacc-67b4bbe35517" 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.