> ## 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.

# Frequently asked questions

> Answers about buying protection, exercise, writer earnings, collateral and access.

## Is Ledig exchanging my funds when I buy an option?

No. The purchase pays for a right to make an exchange later, before expiry. You pay the premium now. If you exercise, you then supply the required settlement tokens and receive the corresponding collateral tokens. See [how hedging works](/how-hedging-works).

## What do I get when I purchase?

You receive a recorded option position for the purchased amount in the selected series. It identifies the exchange you may make and its expiry. The underlying collateral remains committed in the series vault until exercise or expiry release.

## Who provides the tokens I receive when exercising?

The writers whose offers filled your purchase have already committed them as collateral. A purchase can be backed by more than one writer. Ledig provides the infrastructure through which the obligations are recorded and settled.

## Do I need to exercise if the rate moves against me?

You have a right, not an obligation, to exercise. You may leave the option unused if you no longer need the exchange or can obtain a better comparable exchange elsewhere. The upfront premium is not refunded.

## Does exercise happen automatically?

No. You must initiate exercise and have it complete before expiry. The protocol does not monitor market prices to decide whether you should exercise, and a favourable rate does not trigger an automatic payment.

## Can I exercise part of my position?

Yes. You can exercise a positive amount up to your remaining rights. You pay the settlement tokens for that amount and receive the corresponding collateral amount. Any unused rights remain exercisable until expiry. See [exercising and expiry](/exercising-and-expiry).

## Do I need the full settlement amount when buying?

The purchase requires the premium token and applicable transaction costs. The settlement token is required when you exercise. You should plan how to obtain it before entering a position, because the option itself does not arrange that funding.

## Can I exercise using funds in a bank account?

The protocol settles using the specific onchain tokens for the market. It cannot debit your bank account as part of an exercise. Acquiring or redeeming those tokens through a separate service is outside the option transaction.

## Can I sell or transfer my option?

Not in this version. Buyer option rights are non-transferable. Do not enter a position on the assumption that you will be able to sell it or move it to another wallet later.

## What happens at expiry?

Unused exercise rights end at the expiry timestamp. The writer can release the collateral backing those unused rights and withdraw it once unlocked. An expired position may remain visible in history, but that does not mean it can still be exercised.

## Does depositing as a writer earn interest?

No. A deposit alone does not earn a premium. You must post an offer, and a buyer must purchase some or all of it. Your premium earnings relate to the amount actually purchased. See [providing liquidity](/providing-liquidity).

## Can I withdraw my writer collateral whenever I want?

Only unlocked collateral can be withdrawn. You can cancel unsold offers within the market's size rules. Once a buyer has purchased a right backed by your collateral, you cannot cancel that sold obligation. It remains committed until exercise or expiry release.

## Why has my premium not arrived in my wallet?

Earned premiums are credited to a separate premium escrow and must be claimed. Exercise proceeds are credited in a separate settlement escrow and claimed independently. Neither is the same balance as withdrawable collateral. See [claiming proceeds](/claiming-proceeds).

## Are premiums guaranteed profit for writers?

No. They compensate writers for committing collateral and accepting exchange-rate exposure. If exercised, the writer receives the agreed settlement token in exchange for the collateral. The resulting economic loss can exceed the premium earned.

## Can the same wallet be both a buyer and a writer?

A wallet can be approved for one role at a time. Contact Ledig if you need a different approved setup. Changing entry permission does not remove existing positions or cancel a writer's live offers.

## What happens if a market is paused?

The normal series pause stops new purchases and new offers. It does not itself stop valid exercise before expiry, cancellation of unfilled offers, claims, expiry release or withdrawal of unlocked funds. Those actions still depend on their normal conditions and successful token transfers.

## Are example pairs and premiums available to trade?

Examples explain the mechanics. They are not live offers or a complete list of supported markets. Use the active market information and actual quote in the app to see what is available to your approved wallet.

## Is this the same as Ledig's payments and conversion platform?

These docs cover the onchain derivatives product. Ledig's platform payments, virtual accounts and immediate conversion services have separate documentation and terms. A platform account or product price should not be assumed to apply to an option market.

If your question concerns a failed transaction or a balance that looks wrong, start with [troubleshooting](/troubleshooting).