> For the complete documentation index, see [llms.txt](https://docs.optswap.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.optswap.org/user-manual/settlements.md).

# Settlements

"The most important single central fact about a free market is that no exchange takes place unless both parties benefit." — Milton Friedman

Settlements are an absolutely critical aspect of all options contracts. A timely and fair settlement is key to ensuring that all parties are properly assigned and have immediate access to their underlying assets and cash funds after the expiration time has passed.

All the option contracts on OptSwap are natively settled on-chain. Options can be settled for the underlying asset (physical delivery) or in cash tokens.

{% hint style="info" %}
European style options can only be settled on or after expiration, whereas in-the-money American style options can be settled at any time up to and including the date of expiry.
{% endhint %}

### Topics

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[Exercise Option](/user-manual/settlements/exercise-option.md)
{% endcontent-ref %}

{% content-ref url="/pages/sjc8ddqp05i6r9kNXKZL" %}
[Force Cash Settlements](/user-manual/settlements/force-cash-settlements.md)
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[Recover Margin](/user-manual/settlements/recover-margin.md)
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