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Put Call Parity
Under the hood, Sollar's liquidity engine nets and clears AtomicInstruments using one of the most fundamental parity condition known as Put Call Parity Condition. For a quick primer on what it is, here is an excellent resource by CME.

Atomic Instruments

Atomic instruments are the most fundamental financial instruments that cannot be statically replicated.
Atomic instrument list are as follows:
Atomic Instrument
Description
Spot
Spot asset such as SOL, BTC, or ETH
Forward
Forward trading on underlying spot asset with expiry
Cash
Stablecoin such as USDC or USDT
Fixed Income
Zero-coupon style fixed income instrument that pays out a fixed face value upon expiry
Margin Loan
Margin loan on Cash, repaid by expiry at face value
Vanilla Call Option
A call option on spot asset with expiry and at a certain strike price
Binary Call Option
(In development) Binary call option on the spot asset, pays out when if the spot asset price is greater than strike at expiry

Static & Dynamic Replication

In general, replication refers to financial techniques that replicates (i.e. replication) the cash flow characteristics of a reference asset / portfolio. Static replication recreates the reference assets' cash flow while dynamic replication generally recreates reference asset(s)' greeks.
The idea is that we can recreate a financial instrument by combining various lower level atomic instruments together.