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.

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.

Topics

Exercise OptionForce Cash SettlementsRecover Margin