TradePROTECT is what we call buying an “out-the-money, European, covered option”. The buyer pays a non-refundable Instant Premium to obtain the right (not an obligation) to trade a particular digital asset at the end of a specified period for a specified strike price. As TradePROTECT is a covered option, this means there is no counterparty risk. It is the ideal instrument to protect digital assets against adverse market conditions.
TLDR: You pay Instant Premium to buy a right to trade.