Risk disclosure

The Service currently uses mock USDC only, so no real money is at risk. This page describes the risks of the products it demonstrates, which would apply in full if real-money trading is ever offered. Read it as if the money were real.

Options can lose their entire value

A bought option can expire worthless, losing the whole premium. Short-dated options can lose most of their value in hours. Selling options, even covered or capped, can produce losses larger than the premium received, up to the maximum loss of the position.

Perpetual futures are leveraged

A perp position with leverage can be liquidated when the market moves against it by a fraction of its notional, and funding payments accrue every hour whether or not the price moves. Liquidation can happen at any hour, including when the reference market is closed and liquidity is thin. Positions hedging options can be liquidated before the options they hedge expire.

The underlyings are perpetual futures, not the assets

These options reference perpetual futures on Hyperliquid, not the underlying stocks, indices, commodities or coins. A perp can trade away from its reference asset, especially when the reference market is closed, and is run by third-party market operators whose oracle, halting, delisting and settlement decisions can affect prices. Settlement is against a time-weighted average of the perp's mark price, not the asset's official close.

Model prices and a single counterparty

Quotes come from pricing models and, in this phase, from a single market maker (the house). Models can be wrong, data can be delayed or missing, prices can differ materially from listed options on the same asset, and quotes can be withdrawn or halted at any time, including with open positions.

24/7 markets

Prices move at any hour, including weekends and holidays, when liquidity can be thin and spreads wide.

Technology

Outages, delayed data, lost messages and software errors can affect orders, fills and displayed balances. The Service may cancel or correct trades that result from an error.

Regulation

Options and derivatives are regulated differently in different jurisdictions and may not be available where you live. Real-money trading, if offered, will not be available to persons in the United States or in sanctioned jurisdictions.