Option Pricing Mechanism
A technical overview of the inputs behind CallPut option pricing, including underlying reference prices, implied volatility, expiry, strike and protocol risk adjustments.
Option-specific pricing
Options are not priced like simple spot swaps. Their value depends on the relationship between the underlying reference price, strike and expiry, as well as volatility and other model inputs.
Implied volatility
IV reflects the volatility level embedded in option pricing. It can change as market conditions and inventory risk change, so a previous quote should not be treated as a permanent reference.
Risk adjustments
The documentation describes request-specific pricing rather than a single flat retail markup. Always use the current quote generated for the exact instrument and size.
Frequently asked questions
What does the Option Pricing Mechanism page cover?
It covers a technical overview of the inputs behind CallPut option pricing, including underlying reference prices, implied volatility, expiry, strike and protocol risk adjustments.
Does a documentation example guarantee a live market or fill?
No. Market availability, expiries, strikes, liquidity, fees and contract state can change. Check the live application and selected network before acting.
Are CallPut stock and ETF options ownership of the referenced security?
No. The documented stock and ETF options are synthetic onchain instruments and do not grant shares, fund units, dividends, voting rights or physical delivery.