> For the complete documentation index, see [llms.txt](https://munair.gitbook.io/biopset/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://munair.gitbook.io/biopset/theory/overview/summary.md).

# Summary

*BIOPset is the world's first on-demand, peer-to-pool, decentralized binary options trading protocol. It is built on the Ethereum Network to ensure censorship-resistance and governed by BIOP tokens in the Settlement DAO.*

[*Shalaquiana*](https://twitter.com/shalaquiana) *is the pseudonymous founder behind the initial version of the BIOPset protocol.*

## Stakeholders

BIOPset caters to the following classes of stakeholders:

1. Traders.
2. Writers.
3. Settlers.
4. Governors.

The first two stakeholders are counterparties to decentralized binary options. The second two stakeholders make and fine-tune the execution of the protocol.

{% hint style="info" %}
Counterparties take opposing sides of an options contract. It is impossible to buy derivatives (like binary options) without a counterparty willing to sell it.
{% endhint %}

Every participant stands to gain something financially for their interaction with the protocol.

### Traders

The purchasers of binary options are called **options traders** (or just **traders**) in BIOPset nomenclature. These binary options buyers (or "**options holders**") are actively speculating on the direction of price movements. Traders are the principal users of the BIOPset platform.

{% hint style="info" %}
Traders (or options buyers) are active participants in the BIOPset trading protocol.
{% endhint %}

### Writers

The vendors of binary options are called **writers** in BIOPset nomenclature. These binary options sellers (or "**options writers**") are counterparties to binary options buyers.

In BIOPset, writers pool their funds together to function as passive counterparties to traders. They are also called **liquidity providers** (or **market makers**).

{% hint style="info" %}
Writers (or liquidity providers) are passive users in BIOPset.
{% endhint %}

Although BIOPset's infrastructure primarily provides a service to binary options buyers, it is the passive pool of options sellers that provides the liquidity required for the service to work. They are like vendors that set up a shop and bring a market to life.

### Settlers

Settlers are humans (or bots) that facilitate the realization of a gain for either the trader or writer.

They intervene on behalf of the options trader by **settling** in-the-money options. They intervene on behalf of the options writers by **settling** binary options that have become worthless.

### Governors

Anyone holding BIOP tokens is automatically a governor. Governors are responsible for fine-tuning BIOPset parameters to ensure a reasonable yield for liquidity providers.

Liquidity providers need not be governors and vice versa.

{% hint style="info" %}
Ideally, governors are also liquidity providers. This aligns with shorter-term and longer-term incentive structures.
{% endhint %}