---
title: "Protected Perps"
date: "2026-02-11"
excerpt: "A new game for crypto gamblers."
tags: ["protected-perps", "crypto", "derivatives", "payoffs", "options", "finance"]
---

**Protected Perps is a novel payoff.**  
It is a game with a payoff which didn't exist before.

![Protected Perps: LPs take only loss, Traders take only profit, with cost flowing from Traders to LPs](/images/protected-perps-diagram.jpg)

In this payoff:

1. **Traders only make a profit if ETH goes up** and **no loss otherwise**  
2. **LPs only make a loss if ETH goes down**  
3. **Traders pay a fee/cost** to access this payoff  
4. **LPs accept this payoff** in return for the fees they charge the traders