> For the complete documentation index, see [llms.txt](https://docs.optionflow.finance/optionflow-cardano-option-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.optionflow.finance/optionflow-cardano-option-protocol/the-optionflow-protocol.md).

# The OptionFlow Protocol

The OptionFlow protocol is at the heart of our platform. It leverages Cardano's Extended UTXO (eUTxO) model and smart contracts to provide efficient and seamless option creation and execution.

* Option Minting Policy: Ensuring proper issuance and locking of deposit tokens for each option token minted.
* Option Redeemer: Smart Contract address ensuring the execution of options during specified intervals.
* Equivalence to Traditional Call and Put Options: Emulating both call and put options in a decentralized and trustless environment.
* Price Discovery: Options prices determined by free-market trades on the MuesliSwap order book.

See an example interaction with our current beta smart-contracts:

<https://preprod.cexplorer.io/tx/be8dc724281b541a3a2eb6b537be5f8a87c43da564ad47fac5f3f9720335fee4>


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