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Full example

This is a complete working example of selling a cash-secured put on b1nary using Python. 
import requests
from web3 import Web3

# -- Pick your environment --
# Production (Base mainnet, real money):
# API = "https://api.b1nary.app"
# RPC = "https://mainnet.base.org"
# BATCH_SETTLER = "0xd281ADdB8b5574360Fd6BFC245B811ad5C582a3B"
# MARGIN_POOL = "0xa1e04873F6d112d84824C88c9D6937bE38811657"
# USDC = "0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913"

# Testnet (Base Sepolia, no real money):
API = "https://optionsprotocolbackend-staging.up.railway.app"
RPC = "https://sepolia.base.org"
BATCH_SETTLER = "0x766bD3aF1D102f7EbcB65a7B7bC12478C2DbA918"
MARGIN_POOL = "0x727ddBD04A691E73feaE26349F48144953Ef20d6"
USDC = "0xAB51a471493832C1D70cef8ff937A850cf37c860"  # LUSD on testnet

w3 = Web3(Web3.HTTPProvider(RPC))

# 1. Get test tokens (testnet only, one-time)
requests.post(f"{API}/faucet", json={"address": MY_ADDRESS})

# 2. Approve USDC to MarginPool (one-time)
usdc = w3.eth.contract(address=USDC, abi=ERC20_ABI)
usdc.functions.approve(
    MARGIN_POOL, 2**256 - 1
).transact({"from": MY_ADDRESS})

# 3. Read prices
prices = requests.get(f"{API}/prices?asset=eth").json()

# 4. Pick a PUT with an otoken_address
put = next(
    p for p in prices
    if p["option_type"] == "put" and p["otoken_address"]
)

# 5. Calculate collateral for $2,400 commitment
usd_amount = 2400
eth_units = usd_amount / put["strike"]
otoken_amount = int(eth_units * 1e8)
strike_8dec = int(put["strike"] * 1e8)
collateral = (otoken_amount * strike_8dec) // 10**10

# 6. Build quote struct from API response
quote = (
    put["otoken_address"],      # oToken
    int(put["bid_price_raw"]),   # bidPrice
    int(put["deadline"]),        # deadline
    int(put["quote_id"]),        # quoteId
    int(put["max_amount_raw"]),  # maxAmount
    int(put["maker_nonce"]),     # makerNonce
)

# 7. Execute order
settler = w3.eth.contract(
    address=BATCH_SETTLER, abi=SETTLER_ABI
)
tx = settler.functions.executeOrder(
    quote,
    bytes.fromhex(put["signature"][2:]),
    otoken_amount,
    collateral,
).transact({"from": MY_ADDRESS})

# 8. Check position
positions = requests.get(
    f"{API}/positions/{MY_ADDRESS}"
).json()

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Step-by-step breakdown

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1. Get test tokens

Testnet only, one-time. The faucet sends 0.005 ETH (gas), 50 LETH, and 100,000 LUSD.

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2. Approve collateral

One-time per token. For puts, approve USDC (or LUSD on testnet) to the MarginPool. For calls, approve WETH or cbBTC.

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3. Read prices

GET /prices returns all available options with signed quotes. Each entry has the strike, expiry, premium, delta, and the complete EIP-712 data needed for on-chain execution. Filter by option_type (PUT or CALL) and ensure otoken_address and signature are present.

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4. Calculate collateral

For puts: (amount * strike_8dec) / 1e10 gives USDC amount in 6 decimals. For ETH calls: amount * 1e10 gives WETH amount in 18 decimals. For BTC calls: amount directly (cbBTC has 8 decimals, same as oToken).

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5. Execute on-chain

Call executeOrder(quote, signature, amount, collateral) on BatchSettler. Premium arrives in your wallet in the same transaction.

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6. Monitor

GET /positions/{address} shows all open and settled positions with the outcome field.

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The Wheel (automated loop)

The optimal automated strategy is a continuous cycle:
  1. Start with USDC. Sell a cash-secured put at a strike you’d buy at.
  2. If OTM: collateral returned. Collect premium, sell another put.
  3. If ITM: you receive the asset. Sell a covered call.
  4. If call OTM: keep asset and premium. Sell another call.
  5. If call ITM: asset sold at strike. Back to USDC. Repeat from step 1.
Use GET /positions/{address} to check settlement outcomes and decide the next move.

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Dependencies

pip install web3 requests