> ## Documentation Index
> Fetch the complete documentation index at: https://docs.b1nary.app/llms.txt
> Use this file to discover all available pages before exploring further.

# How It Works

> Earn premium by setting the price you'd buy or sell at.

## The 5-step flow

<Steps>
  <Step title="Connect and deposit">
    Sign in with your email or connect a wallet. b1nary creates trading accounts for you on Base and Solana. Deposit USDC, ETH, cbBTC, SOL, or TSLAx from your external wallet. All trades execute from your trading accounts with zero gas fees.
  </Step>

  <Step title="Set your price">
    Pick a price you'd buy or sell at. Further from the current price means safer but lower premium. You can also use **Range** to set both a lower and upper bound.
  </Step>

  <Step title="Get paid upfront">
    A market maker pays you a premium immediately. This money is yours no matter what. You see the exact amount before you accept.
  </Step>

  <Step title="Wait for expiry">
    Your capital is locked for the duration (e.g. 7 days). Track your position on the Positions page.
  </Step>

  <Step title="Two outcomes (or three with Range)">
    **I'd Buy (Put):** Price stays above your strike? Capital back. Price drops? You buy at your price.

    **I'd Sell (Call):** Price stays below your strike? Asset back. Price rises? You sell at your price.

    **Range:** Price stays between your bounds? Everything back. Moves out? You buy (downside) or sell (upside) at the price you chose.

    Either way, you keep the premium.
  </Step>
</Steps>

## Range Earn

Range lets you set both a lower and upper price. If the asset stays within your range, all your capital comes back and you keep premium from both sides.

If the price moves outside your range:

* **Drops below the lower bound:** you buy the asset at the lower price you chose
* **Rises above the upper bound:** you sell the asset at the upper price you chose

Range is similar to providing liquidity to a pool, but the premium is paid upfront instead of accumulating as fees over time.

## Settlement

Options expire weekly at **08:00 UTC**. Settlement is automatic.

* **OTM (price stayed on your side):** collateral returned. You keep the premium.
* **ITM (price crossed your strike):** physical delivery occurs. For puts, you receive the asset. For calls, you receive USDC.

Settlement is atomic, trustless, and fully on-chain. Base settlement uses Aave V3 flash loans and Uniswap V3 swaps where needed; Solana settlement uses the b1nary Solana programs and SPL token accounts directly.