BTC Scenario
Similar to the EVM network, Jasper Vault relies on HTLC to build its entire C2C option trading system on the BTC network. Let's consider a scenario where Alice is an option writer/seller and Bob is an option holder/buyer. Both can execute option transactions through Jasper Vault.
As an option writer, Alice structures and lists the option in the Jasper Vault Dapp. Her BTC wallet generates an HTLC script and transfers BTC to Jasper Vault.
As an option holder, Bob pays a premium through his EVM wallet for the listed option offers.
When put or call options are exercised, the EVM wallet requests a signature service from Jasper Vault, and the BTC wallet uses this signature to claim the HTLC and proceed with the transaction. If the options are not exercised, Bob incurs no loss.
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