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A writer supplies the tokens that a buyer has the right to receive. In return, the writer earns a premium when a buyer purchases that right. You choose how much collateral to offer and the premium you require. Once a buyer purchases your offer, you must honour the exchange if they exercise before expiry. The collateral backing that obligation stays locked in the protocol. Writing an option involves exchange-rate risk. Premium income is not interest, guaranteed profit or a guarantee that you will receive your original token back.

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What you are agreeing to

Consider these illustrative terms: The 1.8% premium applies to the purchased amount for this option. It is not an annual interest rate. Your earnings are the gross premium less the applicable protocol fee. See Pricing and fees. If a buyer purchases the whole offer, their payment creates a claim for your net premium. If they then exercise the whole position, the protocol delivers your 100,000 USDC to them and credits you with a claim for 150 million cNGN. If the whole position expires unused, you can release the 100,000 USDC and withdraw it. You retain your earned premium whether or not the buyer exercises. A partial exercise produces a combination of these outcomes. These are token exchanges onchain. The exercise payment in this example is cNGN, not a naira bank transfer.

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Deposit, offer and purchase are different stages

A deposit alone does not generate yield. An offer that remains unsold does not earn a premium either. A buyer must complete a purchase for premium earnings to arise. Each series has its own collateral vault. A deposit for one series is not automatically available in another.

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Before you provide liquidity

You need approval to use your wallet as a writer. A wallet cannot have buyer and writer permissions at the same time. Permission changes require approval and do not remove obligations you already have. Check the selected series carefully: the collateral token, exercise-payment token, strike rate, exact expiry, minimum offer size and permitted premium increments. Similar-looking series can have different commitments. You also need enough of the specified collateral token and funds to cover applicable network transaction costs. Use the exact supported token on the required network.

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Deposit and post an offer

  1. Connect your approved writer wallet and choose the series.
  2. Review the series terms and the amount you intend to commit.
  3. Approve the collateral vault to spend the required token amount, then deposit.
  4. Choose your offer amount and premium. Your amount must meet the minimum and fit within your unlocked collateral.
  5. Confirm the offer transaction and check the resulting open offer and locked balance.
Posting an offer locks its collateral immediately. The lock covers the promise you are making to prospective buyers. Buyers receive the cheapest eligible offers first. At the same premium level, earlier offers are filled first. Your offer may be bought in parts, and there is no guarantee it will be purchased before expiry.

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Monitor the commitment

Keep track of the unsold amount, the amount purchased by buyers, exercised amounts, claimable proceeds and the expiry time. These values answer different questions about your position. The unsold portion may be cancelled under the series rules. The sold portion cannot be cancelled to avoid an exercise. Removing your writer permission also does not cancel existing live offers: they remain fillable until cancelled or the series expires.

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Understand the economic risk

Full collateralisation means the promised tokens are already committed. It does not protect you from an unfavourable exchange rate. If USDC becomes more expensive in cNGN, the buyer can still use the agreed 1,500 rate. You receive the agreed cNGN amount even if you could sell the same USDC for more elsewhere. The premium may not cover that difference. Token, contract and network risks also remain. Continue with Managing collateral, Claiming proceeds and Risks.