Suppose that you have a portfolio of 10 ETH, with a current market price of $1500 / ETH. If you are concerned that the price of ETH may drop, and you plan to convert that 10 ETH into USDC (or another crypto) in the next 6 months, you could purchase a Hedgey Put contract for 10 ETH with a strike price of $1500. If the ETH price is below $1500 before expiration — you still own the right to sell that 10 ETH for $1500; hence by purchasing the Hedgey Put contract, you have effectively locked in the ETH price at $1500 for the next 6 months. You could do so by paying a premium in USDC for that right; however, you also get to participate in the upside. For example, if the ETH price in 6 months is $2,000 / ETH, you would not exercise the contract, but you still own your ETH and can sell it for $2,000 / ETH. When considering both your traditional ETH position and the Hedgey Put contract, the minimum you will get paid for your ETH is $1500 / USD. Again, this was achieved by paying a premium, yet you also continue to carry upside.