# short $CRT contract

## example 

Let’s assume Litecoin is currently trading for $82.50. A trader would like to gain SHORT exposure. Unlike put options that are often time very difficult to digest and understand, we prefer synthetic derivatives like the <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token over options contracts or even perpetual swaps.

Our <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Synthetic Exchange allows cryptocurrency traders to initiate this contract through our <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token Module that is used for placing <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Token 'BETS". We are calling these synthetic wagers "BETS" because the user will have to *wager* on the future value of a crypto reference rate (**price**) and specify period of time for the smart contract (**duration**) execution.

## LTC short from $82.50 to $77.25

You would like to sell short 1 LTC, which is currently trading at $82.50. You could short 1 LTC via margin trading and invest $82.5 worth of Bitcoin $27,000 / (100,000,000 Satoshi) to short LTC coins.&#x20;

Or, you could initiate a **crtLTC** short contract, and chose settlement price of $77.25 instead. Let us assume the user expects for some reason, technical analysis or momentum trade analysis, that a price of Litecoin will depreciate in 2 days, they might simply wager <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> in the amount of $5.25 (Settlement minus Price) and gain the exact exposure as short selling the underlying crypto outright via conventional crypto exchange.

By purchasing the **crtLTC** 'short' contract you are saying that by expiration, the Users anticipate ADA to have fallen below the break-even point: **$1,77** **Strike.** Price that is lower than the current **Spot $7725** must be covered with <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> collateral that we is available in your wallet.

Unlike with option series contracts, the The profit potential with <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> is always limited to the the price range selected between Spot & Settlement. The Risk involved also is directly tied to the settlement price, and duration of the contract, and as a function of price volatility.

<mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> Tokens are extremely powerful because they are standardized synthetic contracts "1 for all - all for 1", for all cryptocurrencies covered in our market universe. You will be able to stake claims on future price movements of crypto, using <mark style="color:green;">C</mark><mark style="color:yellow;">R</mark><mark style="color:red;">T</mark> as a collateral. We support both Long and Short contract series, and bespoke duration of the contracts' maturity.