❓PokPok Protocol FAQ
Common Questions About Your Digital Farm
What are options?
Options are like chicken insurance contracts! Here's how they work:
- Think of it as "reserving the right" to buy (calls) or sell (puts) at a specific price - You pay a small premium (feeding cost) for this right - If the market moves in your favor, your chicken grows healthy - If the market moves against you, your chicken gets sick - You're never risking more than your feeding costs
Your total profits if profitable is calculated by ($Price at Maturity) – (Strike Price (US$) – (Premium paid for option)
What are put and call options?
Think of puts and calls as your chickens' personality types:
**Call Chickens 📈**
- Optimistic chickens that grow when prices go up
- Profit when market price > strike price
- Use when you think prices will rise
- Example: ETH at $2000, you expect $2500
**Put Chickens 📉**
- Cautious chickens that grow when prices go down
- Profit when market price < strike price
- Use when you think prices will fall
- Example: ETH at $2000, you expect $1500
What are call/put spreads (Water-based Poks)?
Water-based Poks are of a defensive nature, where users give up some profit potential in exchange for a lower cost of rearing. They are good to trade a range-bound market. You pay a full premium upfront, but this will be cheaper than PAYG options because your profit potential is limited.
How do I decide duration of the option (Quick Rear or Normal Rear)?
Choosing your chicken's duration (option expiry) depends on your trading strategy:
**Quick Rear (3 days)**
- Lower premium costs - Better for quick market movements - Higher risk/reward ratio - Good for active traders
**Normal Rear (7 days)**
- Balanced premium costs - More time for market movement - Moderate risk/reward - Popular choice
What happens when I don't feed my chicken on time (PAYG Only)?
Your Pok going hungry has serious consequences:
- Your chicken begins to starve - Position becomes at risk - Pok will starve at 8am UTC if not fed and dies (position terminates) - Premium paid is lost - Option position closes
Pro Farmer Tip: Set up reminders or use the Feed All feature to avoid missed feedings!
What time of the day would my chicken starve?
Chickens in the Coop must be fed by 8am UTC.
When will my chicken mature?
Your chicken will mature on the date indicated, at 8am UTC. For Quick Rear, it takes between 56 to 80 hours, whereas for Normal Rear it takes between 152 to 176 hours.
For example, if a chicken was hatched on 01/01/2025 11pm UTC for a three-day option, it will mature on 04/01/2025 8am UTC, a total of ~57 hours
On the other hand, if a chicken was hatched on 02/01/2025 1am UTC for a three-day option, it will mature on 05/01/2025 8am UTC, a total of ~79 hours
What's the best way to start as a new farmer?
For beginners, we recommend:
1. Start with one chicken (single position)
2. Choose call options when market is trending up
3. Use 7-day nourishing feed for easier management
4. Set price alerts for health monitoring
5. Join the Discord community for tips: https://discord.gg/invite/pokpok
Why are prices of options different/keeps changing?
Option prices (your chicken's feeding costs) change based on several factors:
Price Factors:
├── Market Volatility
│ └── More volatility = Higher prices
├── Time Until Expiry
│ └── More time = Higher prices
├── Strike Price Distance
│ └── Further from current price = Lower prices
└── Market Conditions
└── Overall market sentiment affects prices
Can I have multiple chickens?
Yes! You can manage multiple chickens:
- No limit on number of chickens - Each represents a unique options position - You can mix calls and puts - Different feeding schedules possible - Portfolio diversification is recommended
What are PEGGs or Golden Eggs?
PEGGs ($PEGG) are golden eggs - the valuable reward tokens of PokPok:
- Earned through successful farming - Share in protocol revenue - Earned from staking healthy chickens - Tradeable on certain exchanges
How is the APR calculated for staked chickens?
APR in PokPok is calculated this way: Total APR = [Weekly PEGG Emissions (in $) / Value of all Pok chickens staked (in $)] * 52 weeks
How long can my healthy Poks be staked?
Starting Epoch 30, all Poks can be staked for Golden Eggs 30 days upon maturity.
Why are some of my PEGGs locked?
PEGG locking is part of our tokenomics design:
- Ensures sustainable protocol growth - Prevents market dumps - Rewards long-term farmers - Aligns incentives - Protects token value
What's the difference between Genesis NFTs and regular chickens?
Genesis NFTs have special privileges:
- A portion of weekly emissions are reserved for staked Genesis chickens
Following features are work in progress:
- Reduced trading fees - Early access to features - Exclusive analytics - Special Arena abilities
How are profits and losses calculated?
If your option is profitable at maturity, the price of the chicken in ETH will be = Current Price – Strike Price. If it is unprofitable, you will receive a diseased chicken that can be burnt and returned for a small amount of $PEGG tokens
For Grass-based Poks, profit potential is unlimited
For Water-based Poks, profit potential is capped.
How do I minimize my losses?
Risk management strategies:
1. Use stop-loss planning
2. Monitor health regularly
3. Diversify positions
4. Start with smaller positions
5. Don't chase losses
How can I contribute to PokPok?
Ways to contribute:
1. Join community discussions
2. Participate in governance
3. Create educational content
4. Report bugs/issues
5. Refer new users
How do I stay updated with PokPok news?
Follow our channels at official links:
- Discord announcements
- Twitter updates
- Telegram group
- Official blog
- Newsletter
Last updated