Centralized 1-on-1
In the existing/traditional financial markets, each derivative contract is 1-to-1 between you the trader and the issuer of the derivative contract
Sadly, there is no escaping leverage in this old outdated world, because remember, risk and reward are equal and opposite for the two parties in a 1-to-1 contract
So, the only way to get amazing returns is to take on increasingly higher leverage
The lure of leverage can however be devastating to your financial resources
Decentralized 1-on-many
At CloseCross, we asked a very simple question: why not change the number of parties involved in a derivatives contract?
And voila: the multi-party settlement mechanism was born, which allows you to participate in common derivative smart contracts with hundreds and thousands of other users
No leverage is needed anymore to make amazing returns. Your payouts are only limited by the number of losing parties and the amounts they put in the contract.
It’s a simple mathematical solution to an age old problem
Now instead of changing the amount of leverage between two parties in a derivative contract, we change the number of people/parties involved in the derivatives contract and have no leverage. An easy solution to the grave problem of leverage that the financial industry systematically doesn’t address to keep the balance of power in their favour. Never again. Decentralized multi-party contracts are the future. And its already here at CloseCross.
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