> ## Documentation Index
> Fetch the complete documentation index at: https://docs.derivatives.ledig.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Exercising and expiry

> Use all or part of an option, understand token settlement and avoid losing the right at expiry.

**Exercising** means using the exchange right you purchased. You provide the specified payment token and receive the corresponding collateral token at the fixed strike rate.

Ledig’s options can be exercised before their exact expiry. You choose whether and when to do so. The protocol does not compare the market rate for you and does not automatically exercise a position when doing so appears favourable.

## Check the payment before exercising

An option purchase pays for the right, not the later exchange. Your wallet needs the correct exercise payment token and enough funds for network fees when you use that right.

In the illustrative 100,000 USDC option at 1,500 cNGN per USDC, full exercise requires 150 million cNGN. The 1,800 USDC premium paid earlier is separate and is not deducted from this payment.

Compare exercise with the rate actually available for the same token pair and amount. Consider the practical need for the tokens and any transaction costs. The protocol can accept a valid exercise even when a different exchange would be economically better.

## Exercise some or all of the position

You can exercise less than the remaining option amount. The unused part keeps the same strike rate and original expiry.

| Action in the example | cNGN paid | USDC received | Rights remaining |
| - | - | - | - |
| First exercise | 60,000,000 | 40,000 | 60,000 USDC |
| Later exercise of the balance | 90,000,000 | 60,000 | None |
| Combined | 150,000,000 | 100,000 | None |

The second exercise must also execute before expiry. Splitting the position does not extend its life or refund part of the premium. Each transaction can incur a separate network cost, and actual amounts follow the tokens’ supported precision.

## Complete the transaction

1. Select the purchased position and check its remaining amount and exact expiry.
2. Enter the amount to exercise and review the corresponding payment and receipt amounts.
3. Approve the exercise payment token if required.
4. Confirm the exercise transaction and wait for its confirmed result.
5. Verify the received tokens and any option amount still remaining.

The exchange completes as one transaction. The payment token is placed in a separate holding contract for the backing writers to claim, while the collateral token is delivered directly to your wallet. You do not wait for a writer to log in, send funds or claim their proceeds.

If the exercise fails, its exchange and reduction of option rights are reversed together. An unsuccessful transaction can still cost a network fee. Insufficient funds or token approval, token restrictions, network problems and transaction execution limits can prevent completion.

## The expiry deadline is final

At the exact expiry, exercise stops. The transaction must execute before that timestamp. Signing or submitting before the deadline is insufficient if it reaches execution too late.

Allow time for funding, approvals and confirmation. Neither a favourable market movement nor a delayed transaction extends the right. The normal series pause and a later change to buyer permissions do not themselves block valid exercise before expiry, but token and network failures can still prevent it.

Unused rights expire without a premium refund. They may remain visible in wallet records or transaction history, but that record does not preserve the right to exercise. The writer can release the collateral that is no longer required after expiry.

## Transfers, resale and cancellation

The option cannot be transferred to another wallet or resold in this version. There is no buyer cancellation that recovers the premium after a successful purchase. If you do not want to use the right, you may leave it unused.

For the writer’s side of settlement, read [Claiming proceeds](/claiming-proceeds). For what can affect timely settlement, read [Risks](/risks).