e.g. you receive 1 BTC worth $50k. Sell half so you have 0.5 BTC + $25k. If BTC goes to $100k you refund the $50k, left with 0.5 BTC and -$25k cash, profit $25k If BTC goes to $25k you refund 1 BTC, left with $25k cash and -0.5 BTC, profit $12.5k
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This is an application of put-call parity btw. Immediately selling half of the BTC you received converts half of your implicit BTC call into a BTC put, so you now have a BTC straddle, which is guaranteed to profit in every outcome - optionality without price exposure.
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Tesla have committed not to sell any of the Bitcoin that they receive for selling cars, but there is nothing to stop them from selling some of the $1.5 billion of BTC that they bought earlier this year
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If new Teslas were a security this would definitely be illegal, but they aren't so

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Thanks! I posted a question about the refund policy yesterday re: BTC vs USD and arb. Much appreciated.
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going long BTC vol for free,
@elonmusk you are playing 4d chess here man well doneThanks. Twitter will use this to make your timeline better. UndoUndo
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Woah... this introduces some super weird incentives....
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Anyone who can collect 100s of millions of $ in interest-free loans from prospective customers is evidently pretty good at... incentives.
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What awesome customer service, I see why so many people love this company!
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