# Price Settlement Impermanent Gain is the flagship of the iGain Universe. Options are targetting at the IL of certain token pairs. The settled price of Long and Short tokens will be determined by the **IL degree** at the expiration date. The huger the degree of the IL is, the higher the settled price of the Long token. Through holding a corresponding amount of the Long tokens may perfectly **offset the impermanent loss** of the entire position. The real-time price of the Long tokens before expiration is determined by the market forces. Each option lasts a month. To determine the settled prices of Long/Short tokens, we might find some clues in the historical data. We extract the ETH/DAI price data from 2020/1/1 to 2020/12/21, and we present the impermanent loss data of providing liquidity for a month at each time. ![](/files/-MRTQdTAiwoVyShZRUpV) From the above chart, we can find out that the impermanent loss of serving as the liquidity provider for a month is within `0 to -10%` at all times. There is no such case that IL is above -10%. Most of time, It was between `0 to -5%`. Therefore, we can add 20x leverage to Impermanent Gain, narrowing the IL range from (-100%, 0) to (-5%, 0), effectively increasing capital utilization. The correlation between the settled price of Long/Short tokens and the IL is shown below: If IL is 0% after a month, then the price of 1 Long will be settled at 0 DAI; the price of 1 Short will be settled at 1 DAI. If IL is 10% after a month, then the price of 1 Long will be settled at 1 DAI; 1 Short will be settled at 0 DAI. ![](/files/-MfEWEYjxlWwOsbe3Uip) We can also express it in the mathematic formula: $$ 1\ Long=\left{\begin{matrix} 20\times |IL| \ DAI& ,0\leq|IL|\leq0.05 \\ 1 \ DAI& ,|IL|\geq0.05\ \ \ \ \ \ \\\ \end{matrix}\right., \ \ Short = 1-Long $$ The setting of the leverage ratio varies with the pair and the duration. The greater the price volatility and the longer the duration, the lower the leverage ratio, and vice versa. We will determine a reasonable leverage ratio based on historical prices backtesting. \*Price feeds will be pulled from Chainlink Oracle ## Dynamic Trading Fee As the option expiration date approaches, the market price will converge to the actual |IL| by arbitrage trading; that is to say, some people will definitely come to arbitrage and generate trading volume when there's a spread between market price and index price. In order to increase the revenue of liquidity providers, we will adopt the “dynamic transaction fee” in the future, and the fee will be linearly adjusted from 0.3% to 3% over time. ![](/files/NUmEh54BgnEook5vYcJh) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://hakkafinance.gitbook.io/igain/igain-universe/impermanent-loss/10x-leverage.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.