Skip to main content

​
General

Convallax is the options layer for prediction markets. We issue European cash-settled call and put options on Polymarket YES token prices, collateralized in USDC, and settled on Polygon. Traders get leveraged exposure to prediction market outcomes with capped downside, and market makers earn the spread by providing liquidity through our RFQ system.
On Polymarket, you buy YES or NO tokens with linear payoff — if YES is at 60¢ and the event happens, you profit 40¢ per token.With Convallax options, you can express more nuanced views. A call option at strike 50¢ lets you profit from YES moving above 50¢ while only risking the premium you paid. You can also buy puts to profit from YES declining, or write options to earn premium income. Options provide leverage, defined risk, and flexibility that linear token positions cannot.
Convallax supports options on any Polymarket binary market for which the team has registered an option series on-chain. The current testnet deployment features the Hantavirus 2026 market with strikes from 35¢ to 75¢ and monthly expiries through December 2026.If you’d like a specific market supported, contact us at hello@convallax.xyz.
Convallax is deployed on Polygon Amoy testnet (chain ID 80002). All option tokens are ERC-1155s on Polygon, and collateral is held in testnet USDC.

​
Trading

Convallax uses a request-for-quote (RFQ) model. When you submit a trade, market makers compete to quote you a price in real time. You always get the best available price from competing market makers, rather than trading against a fixed AMM curve.
  • A call option profits when the YES price finishes above the strike price at expiry. Payoff: max(0, S − K).
  • A put option profits when the YES price finishes below the strike price at expiry. Payoff: max(0, K − S).
Both are European style — they can only be exercised at expiry, not before.
Strikes range from 5¢ to 95¢ in 5¢ increments. Not all strikes may be registered for every market — check the trading interface for available series.
No. If you are a buyer (long), your maximum loss is the premium you paid. Options provide built-in downside protection — you can never lose more than your initial outlay.If you are a writer (short), your loss is bounded by the collateral you posted, which covers the worst-case payout.
If no market maker submits a valid quote within the timeout window (default 800ms), the RFQ is rejected and no trade occurs. You are not charged anything. You can retry immediately.

​
Settlement

At expiry, a resolution price is computed off-chain — either as a 30-minute VWAP of YES token trades on Polymarket, or as a binary 0/100 if the market has fully resolved. The resolution price is signed by a trusted resolution signer and submitted on-chain via an EIP-712 attestation. After settlement, holders and writers claim their respective payouts.
VWAP (Volume-Weighted Average Price) resolution uses the average YES token trading price on Polymarket during the 30 minutes before option expiry. This provides a fair continuous settlement price for options that expire before a market has fully resolved.
Yes. Unlike Polymarket tokens which ultimately resolve to 0 or 1, Convallax options can settle at any continuous price via VWAP. For example, if the 30-minute VWAP is 0.59, options settle at resolutionBps = 59. This allows options to capture partial moves in probability.
Your payout remains available on-chain indefinitely. There is no deadline to claim — call claimHolderPayout or claimWriterCollateral whenever you’re ready.

​
Market Making

Connect a WebSocket client to the maker relay at /maker/v1/ws, listen for RFQ broadcasts, and submit competitive quotes. See the How to Become a Market Maker guide for full setup details.
No special role is required. Any client that connects to the WebSocket relay and submits valid quotes can participate as a market maker. If the relay has API key authentication enabled, you’ll need a key — contact us at hello@convallax.xyz.
For taker buys, the lowest valid price wins. For taker sells, the highest valid price wins. Quotes must also meet minimum size requirements (≥ 50% of requested size) and pass no-arbitrage checks.

​
Security

The smart contracts have been prepared for audit with a formal specification covering the three-contract architecture, all lifecycle functions, collateral invariants, and a comprehensive test suite (51 tests). Contact us for the latest audit status.
The contract owner can create series and perform emergency settlement, but cannot withdraw user collateral or option tokens. The ConvallaxRFQSettlement contract is non-custodial — it only facilitates atomic swaps and never holds funds. The emergency pause function blocks new minting but never traps existing positions — settlement and claims always remain available.