> For the complete documentation index, see [llms.txt](https://docs.stratium.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stratium.xyz/about-stratium/why-structured-products.md).

# Why Structured Products?

### What They Are

A structured product combines multiple building blocks into a single position with a defined payoff. Instead of plain long or short exposure, it expresses a specific view: a range, a threshold, a volatility level, a conditional outcome.

A binary option is the simplest case. "Will BTC be above $100,000 on Friday?" pays a fixed amount if yes, zero if no. A range note pays only while an asset stays within set bounds. The trader chooses the outcome profile deliberately. That is structured finance.

### Why They Exist

**Hedging.** Protect against an adverse move without exiting the position. Buy volatility protection rather than selling spot and paying slippage.

**Yield.** Earn from non-directional exposure to volatility, rates, or correlation. Selling volatility in a calm regime produces income that directional positions cannot.

**Tailored risk.** Express bounded or conditional views a linear perpetual cannot. Cap the downside, define the payoff, trade the specific outcome you have a view on.

### Traditional vs. Stratium

| Aspect       | Traditional                     | Stratium                           |
| ------------ | ------------------------------- | ---------------------------------- |
| Access       | OTC desks, large minimums       | Open market, no minimums           |
| Transparency | Opaque pricing, bilateral terms | Onchain, verifiable payoffs        |
| Liquidity    | Illiquid, hold to maturity      | Continuous trading via Hyperliquid |
| Counterparty | Bank or issuer                  | Protocol, non-custodial            |
| Settlement   | Days to weeks                   | Instant, onchain                   |
| Composition  | Static, single-issuer           | Composable across DeFi             |


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