Example of three possible payout structures (binary, linear and scaled). Structure 1 (binary) uses a single threshold where a full payout occurs. Structure 2 (linear) involves potential payouts scaling with the trigger value. Structure 3 (scaled) has multiple plateaued thresholds at which payouts occur. Credit: Courtesy of the authors

Example of three possible payout structures (binary, linear and scaled). Structure 1 (binary) uses a single threshold where a full payout occurs. Structure 2 (linear) involves potential payouts scaling with the trigger value. Structure 3 (scaled) has multiple plateaued thresholds at which payouts occur. Credit: Courtesy of the authors

Example of three possible payout structures (binary, linear and scaled). Structure 1 (binary) uses a single threshold where a full payout occurs. Structure 2 (linear) involves potential payouts scaling with the trigger value. Structure 3 (scaled) has multiple plateaued thresholds at which payouts occur. Credit: Courtesy of the authors

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