Market Configurations

Each asset has a single liquidity pool that forms the market maker behind each trade. Each of these liquidity pools has configurations at the market level aimed to reduce risk. Configurations below are subject to change. Vault Position Cap

Each option market has a specific cap on max position that the vault can enter. For example, a single strike for a SOL Call cannot take up more than 25% of all the capital of the vault. This position cap is in place to prevent concentrated risk in a few number of positions.

Minimum Trade Delta

The vault will trade options in a reduce only mode that have a calculated delta of +/- 0.02 or greater for Calls/Puts as a risk measure.

Minimum Bid

The vault will trade options in a reduce only mode (meaning open positions can be closed, but no new positions can be placed) that have a calculated minimum mark price of 0.002 of underlying or less.

For example, if a SOL call was showing a mark price of 0.001 SOL, users would not be able to open new positions, but would be able to close existing ones.

Near Expiry Market Closure

Each market has the ability to pause trading at a certain amount of time before standard weekly expiry of 0800 UTC each Friday. Currently each option market pauses trading from 0400 UTC - 0800 UTC each Friday. Market closures protect risk from being absorbed by the pools close to market expiry, where greeks are subject to large changes.