Linear USDC Options on Deribit are European options, priced and settled in USDC.
European style options are exercised only at expiry and cannot be exercised before. On Deribit, this will happen automatically at expiry. (Though the options are only exercised at expiry, traders are free to close their positions before expiry in the open market.)
At expiry, in the money (ITM) options are first physically settled into a futures contract at the strike price of the option. That futures contract then immediately settles into USDC cash. The net financial result for the trader (the amount received or paid, and the currency it is settled in) is identical to a direct cash settlement. Although the options now physically settle into futures, from the trader’s perspective they can still be thought of as cash settled.
The options are priced in USDC. Additionally, the implied volatility of the option’s price is also displayed on the platform.
A call option is the right to buy the underlying asset at a specific price (the strike price), and a put option is the right to sell the underlying asset at a specific price (the strike price). At expiry, only the intrinsic value of the option is settled.
Altcoin options also typically have a contract multiplier, meaning each contract represents a certain amount of the underlying currency. More info on this below.
Settlement Process Change
From early April 2026, linear (USDC) options are settling via a two-step process rather than directly into cash. Any ITM option is first physically settled into a futures contract at the strike price, and that futures contract then cash settles into USDC. Out of the money (OTM) options are unaffected: they expire worthless as before.
What is changing
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Additional futures contracts are listed alongside options, one for each option expiry date. These new futures are listed at the same time as the first option contracts for each expiry.
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At the moment of expiry, ITM options generate two entries in the transaction log: an entry physically settling the option into the relevant futures contract (at the strike price), followed by a delivery entry for that futures contract settling into USDC.
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OTM options that expire worthless show an "expiry" type in the transaction log instead of a delivery entry.
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Any existing position on the relevant expiry future nets off against the option-generated position just before expiry. This can reduce delivery fees if there is an offsetting futures position.
What is not changing
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The settlement currency for all instruments remains USDC.
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The expiration price is still calculated as the 30-minute TWAP of the index leading into expiry, so the profit or loss of any option position is exactly the same as before.
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A delivery fee is still paid on an ITM option when it physically settles into futures. The futures position generated by that physical settlement does not incur an additional delivery fee. There is no double payment for the same position.
Delivery fees
The usual delivery fee applies to an ITM option at the moment it physically settles into futures. The futures position created by this physical settlement does not itself attract an additional delivery fee.
However, if the option-generated futures position offsets or reduces an existing position on the expiry future, the delivery fee for the remaining futures position will be lower, or zero if the position reverses direction. This means traders will either pay exactly the same delivery fees as before, or pay slightly less. The net financial result of the change is that a trader will either see no change, or will be slightly better off.
Settlement examples
Example 1: no pre-existing futures position
A trader is long one BTC_USDC call option with a strike price of $100,000. At expiry the expiration price is $125,000.
Old method: A delivery entry settles the $25,000 USDC intrinsic value of the option directly into the cash balance.
New method: First, an entry physically settles the option into a BTC_USDC futures contract: one BTC of futures is purchased with an entry price of $100,000 (the strike price). Next, a delivery entry settles the $25,000 USDC profit from the futures contract into the cash balance.
In both cases the cash balance increases by $25,000 USDC and the total delivery fee is the same, as there was no pre-existing futures position to offset.
Example 2: pre-existing futures position (offsetting)
A trader is long one BTC_USDC put option with a strike price of $80,000, and also holds a long BTC_USDC futures position of 0.5 BTC on the expiring future (entry price $80,000). At expiry the expiration price is $70,000.
Old method: A delivery entry for the option settles the $10,000 USDC intrinsic value into the cash balance. A separate delivery entry for the future settles the $5,000 USDC loss into the cash balance. Net result: +$5,000 USDC. Delivery fee is calculated on a combined position size of 1.5 BTC.
New method: First, an entry physically settles the put option: 1 BTC of futures is sold at $80,000 (the strike price). This nets off against the existing 0.5 BTC long, resulting in a 0.5 BTC short. Next, a delivery entry for the 0.5 BTC short settles the $5,000 USDC profit into the cash balance. Net result: +$5,000 USDC, the same as before.
The difference is in delivery fees: with the old method the fee was calculated on 1.5 BTC total; with the new method it is only calculated on 1 BTC (the option delivery), and the remaining futures position netted to zero, resulting in no delivery fee for the future. Total delivery fees are therefore one-third lower.
Trading examples
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Buying a call option |
A trader buys a SOL call option with a strike price of 250 USDC for 10 USDC. As Solana has a multiplier of 10 applied the buyer pays 10 * 10 USDC = 100 USDC. With the multiplier this call option represents the right to buy 10 SOL for 250 USDC each. The option is cash settled. At the expiry, the SOL Index is at 275 USDC and the delivery price is 275 USDC. In this case, the option is settled for 25 USDC per 1 SOL. This is calculated by subtracting the strike price minus the delivery price. 275 - 250 = 25. As Solana has a multiplier of 10 the total amount USDC which is settled is 25 * 10 = 250 USDC At the expiry, the trader’s account is credited with 250 USDC (25 * 10), and the seller’s account is debited with 250 USDC. The initial cost was 100 USDC, therefore the trader’s profit is 150 USDC. Any call option with an exercise price (strike price) above 275 USDC will expire worthless. Exercising of in the money options happens automatically at the expiry. The trader cannot exercise the option himself, or exercise it before the expiration. However, option positions can still be closed before expiry though by trading them in the open market. |
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Buying a put option |
A trader buys a SOL put option with a strike price of 250 USDC for 10 USDC. This put option represents the right to sell 1 SOL for 250 USDC. At the expiry, the SOL Index is at 225 USDC and the delivery price is 225 USDC. In this case, the option is settled for 225 USDC per 1 SOL. This is calculated by subtracting the delivery price minus the strike price. 250 - 225 = 25. As Solana has a multiplier of 10 the total amount USDC which is settled is 25 * 10 = 250 USDC At the expiry, the trader’s account is credited with 250 USDC (25 * 10), and the seller’s account is debited with 250 USDC. The initial purchase price was 100 USDC; therefore, the trader’s profit is 150 USDC. Any put option with an exercise price (strike price) below 225 USDC will expire worthless. Exercising of in the money options happens automatically at the expiry. The trader cannot exercise the option himself, or exercise it before the expiration. However, option positions can still be closed before expiry though by trading them in the open market. |
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Selling a call option |
A trader sells a SOL call option with a strike price of 250 USDC for 10 USDC. As Solana has a multiplier of 10 applied the seller receives 10 * 10 USDC = 100 USDC. At the expiry, the SOL Index is at 225 USDC and the delivery price is 225 USDC. The option expires worthless as the delivery price is below the strike price of the call option. The buyer lost 100 USDC and the seller gained 100 USDC. |
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Selling a put option |
A trader sells a put option with a strike price of 250 USDC for 10 USDC At the expiry, the SOL Index is at 275 USDC and the delivery price is 275 USDC. The option expires worthless as the delivery price is above the strike price of the put option. The buyer lost 100 USDC and the seller gained 100 USDC. |
Linear option contract specifications
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Linear options |
BTC_USDC |
ETH_USDC |
AVAX_USDC |
HYPE_USDC |
SOL_USDC |
TRX_USDC |
XRP_USDC |
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Symbol* |
BTC_USDC-DDMMMYY-STRIKE-SIDE Date: (2 numbered date, 3 letters of month, 2 numbers of year) Strike: Strike price of the option Side: Either 'C' (call) or 'P' (put) |
ETH_USDC-DDMMMYY-STRIKE-SIDE Date: (2 numbered date, 3 letters of month, 2 numbers of year) Strike: Strike price of the option Side: Either 'C' (call) or 'P' (put) |
AVAX_USDC-DDMMMYY-STRIKE-SIDE Date: (2 numbered date, 3 letters of month, 2 numbers of year) Strike: Strike price of option Side: Either 'C' (call) or 'P' (put) |
HYPE_USDC-DDMMMYY-STRIKE-SIDE Date: (2 numbered date, 3 letters of month, 2 numbers of year) Strike: Strike price of the option Side: Either 'C' (call) or 'P' (put) |
SOL_USDC-DDMMMYY-STRIKE-SIDE Date: (2 numbered date, 3 letters of month, 2 numbers of year) Strike: Strike price of the underlying asset Side: Either 'C' (call) or 'P' (put) |
TRX_USDC-DDMMMYY-STRIKE-SIDE Date: (2 numbered date, 3 letters of month, 2 numbers of year) Strike: Strike price of the option Side: Either 'C' (call) or 'P' (put) |
XRP_USDC-DDMMMYY-STRIKE-SIDE Date: (2 numbered date, 3 letters of month, 2 numbers of year) Strike: Strike price of the underlying asset Side: Either 'C' (call) or 'P' (put) |
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Underlying Asset / Ticker |
Deribit BTC_USDC Index* |
Deribit ETH_USDC Index* |
Deribit AVAX_USDC Index |
Deribit HYPE_USDC Index |
Deribit SOL_USDC Index |
Deribit TRX_USDC Index |
Deribit XRP_USDC Index |
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Underlying future |
The forward price for an expiry is the corresponding future's mark price. If there is no corresponding future a synthetic future is used. |
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Type |
Linear |
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Category |
Option |
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Trading hours |
24/7 |
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Quoted Currency |
USDC |
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Margin Currency |
USDC |
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Strike price intervals |
Please see contract introduction policy |
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Strike prices |
In the money (ITM) , at the money (ATM) and out of the money (OTM) strike prices are initially listed. New series are generally added when the underlying asset trades above the highest or below the lowest strike price available. |
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Contract Multiplier Description |
To enhance tradability and offer Linear USDC Options in line with market standards Deribit has decided to implement a contract multiplier. This multiplier varies depending on the currency. When the multiplier is 100 it means when trading 1 lot the client would actually buy or sell 100 options. When trading for example 1 SOL option contract at a price of USD 5.10 the settlement of that trade will show 10 * 5.10 = USD 51. Each underlying could have a distinct multiplier given the wide range of different prices the altcoins trade at. In this description, “lot” means one options contract ( In the API the setup will be as follows: • The number of tokens/coins an options contract represents is called the contract multiplier. For example, one Linear USDC Option contract is equivalent to 1000 coins of the underlying asset e.g. XRP. • If the quoted option premium is USDC 2 and the option contract size is 1000 and the client buys 5 contracts/units, the option contract’s cost is USDC 10,000. • Quantity = 5 • Contract_size = 1000 (in FIX it is called ContractMultiplier) • Amount = Contract_size * Quantity = 5 * 1000 = 5000 • All APIs for Positions/Trades/Orders/Ticker/order book would keep the amount (in units) as we have now but have an extra field quantity. |
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Contract Multiplier Values |
1 Each contract represents 1 BTC. The premium is shown for 1 BTC. Fractional contracts are possible. |
1 Each contract represents 1 ETH. The premium is shown for 1 ETH. Fractional contracts are possible. |
100 Each contract represents 100 AVAX. The premium is shown of 1 AVAX. |
10 Each contract represents 10 HYPE. The premium is shown of 1 HYPE. |
10 Each contract represents 10 SOL. The premium is shown of 1 SOL. |
10,000 Each contract represents 10,000 TRX. The premium is shown of 1 TRX. |
1,000 Each contract represents 1,000 XRP. The premium is shown of 1 XRP. |
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Initial Margin |
The initial margin is calculated as the amount of USDC that will be reserved to open a position. Standard margin account: Long call/put: The premium for a long option is paid in full, at the moment of purchase, from your cash balance. Other than the premium paid, there are no further margin requirements for a long option in a Standard Margin (SM) account. Short Call: MAX(0.15 - OTM Amount/Underlying Mark Price, 0.1) * Index + Mark Price of the Option where OTM Amount = MAX(Strike - Underlying Mark Price, 0) Short Put: MAX((0.15 - OTM Amount/Underlying Mark Price) * Index, 0.1 * Strike) + Mark Price of the Option where OTM Amount = MAX(Underlying Mark Price - Strike, 0) |
The initial margin is calculated as the amount of USDC that will be reserved to open a position. Standard margin account: Long call/put: The premium for a long option is paid in full, at the moment of purchase, from your cash balance. Other than the premium paid, there are no further margin requirements for a long option in a Standard Margin (SM) account. Short Call: MAX(0.2 - OTM Amount/Underlying Mark Price, 0.13) * Index + Mark Price of the Option where OTM Amount = MAX(Strike - Underlying Mark Price, 0) Short Put: MAX((0.2 - OTM Amount/Underlying Mark Price) * Index, 0.13 * Strike) + Mark Price of the Option where OTM Amount = MAX(Underlying Mark Price - Strike, 0) |
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Maintenance Margin |
The maintenance margin is calculated as the amount of USDC that will be reserved to maintain a position. Standard margin account: Long call/put: The premium for a long option is paid in full, at the moment of purchase, from your cash balance. If the option has a positive result the PNL is locked in the position and can not be withdrawn or utilized to cover other positions. Other than the premium paid and positive result of the option, there are no further margin requirements for a long option in a Standard Margin (SM) account. Short Call: 0.075 * Index + Mark Price of the Option Short Put: 0.075 * MIN(Index , Strike) + Mark Price of the Option |
The maintenance margin is calculated as the amount of USDC that will be reserved to maintain a position. Standard margin account: Long call/put: The premium for a long option is paid in full, at the moment of purchase, from your cash balance. If the option has a positive result the PNL is locked in the position and can not be withdrawn or utilized to cover other positions. Other than the premium paid and positive result of the option, there are no further margin requirements for a long option in a Standard Margin (SM) account. Short Call: 0.1 * Index + Mark Price of the Option Short Put: 0.1 * MIN(Index , Strike) + Mark Price of the Option |
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Mark price |
Mark price of an options contract is the current value of the option as calculated by the Deribit risk management system. Usually, this is the average of the best bid and best ask price. However, for risk management purposes, there are other checks and bandwidths in place. |
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Delivery price |
Time-weighted average of Deribit index as measured between 07:30 and 08:00 UTC. |
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Exercise style |
European style with a cash settlement. European style options are exercised at the expiry. This is done automatically and no action from the trader is required. |
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Exercise Settlement Value |
Exercise of an linear options contract will result in a settlement in USDC immediately after the expiry. The exercise settlement value is calculated using the delivery price. The settlement amount in USDC is equal to the difference between the delivery price and the strike price of the option. |
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Settlement method |
Cash settlement in USDC. |
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Settlement |
Daily at 8:00 AM UTC |
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Expiration dates |
Daily at 8:00 AM UTC |
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Liquidation fees |
0.19% of Index price |
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Minimum order size |
0.01 contract |
0.1 contract |
1 contract |
1 contract |
1 contract |
1 contract |
1 contract |
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Minimum tick size |
Option price up to 1,000, tick size 5 USDC Option price > 1,000, tick size 20 USDC |
Option price up to 50, tick size 0.2 USDC Option price > 50, tick size 1 USDC |
Option price up to 0.1, tick size 0.0005 USDC Option price > 0.1, tick size 0.0020 USDC |
Option price up to 0.5, tick size 0.002 USDC Option price > 0.5, tick size 0.01 USDC |
0.10 USDC |
Option price up to 0.01, tick size 0.00005 USDC Option price > 0.01, tick size 0.0001 USDC |
0.0005 USDC |
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Minimum block size |
25 contracts (25 BTC notional) |
250 contracts (250 ETH notional) |
25 contracts (2,500 AVAX notional) |
150 contracts (1,500 HYPE notional) |
150 contracts (1,500 SOL notional) |
25 contracts (250,000 TRX notional) |
75 contracts (75,000 XRP notional) |
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Minimum block tick size |
5 USDC |
0.2 USDC |
0.0005 USDC |
0.002 USDC |
0.10 USDC |
0.00005 USDC |
0.0005 USDC |
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Minimum combo tick size |
5 USDC |
0.2 USDC |
0.0005 USDC |
0.002 USDC |
0.10 USDC |
0.00005 USDC |
0.0005 USDC |
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Position Limit |
Standard margin account: Maximum total short option position size 1,000,000 USDC |
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Order types |
Limit orders IV orders |
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Trading bandwidths |
Determined by the risk management and based on a risk matrix. |
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Mistrade correction value |
10% of the index price away from the mark price. |
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*In the API, for some of the USDC settled options, the strike can be shown as xdyyyy for options with strikes around or below 1 dollar. x represents the whole dollar, d represents the decimal point, and yyyy represents the fraction of a dollar.
Note
* As of the 15th of July 2025, the BTC-USDC index is pegged to the BTC-USD index, and the ETH-USDC index is pegged to the ETH-USD index. This means that for the purposes of delivery and settlement of derivatives that use these two indexes, parity between USD and USDC is assumed. For the valuation of collateral in X:SM and X:PM accounts though, the USDC/USD exchange rate is still used to calculate equities and margin balances in USD terms.
Black-Scholes Formula
These are the formulas as used with Deribit's linear (USDC settled) options.
Call option price:
C = (F * N(d1)) - (K * N(d2))
Put option:
P = (K * N(-d2)) - (F * N(-d1))
d1 and d2 are calculated as follows:
d1 = (ln(F/K) + ((σ^2)/2) * T) / (σ * sqrt(T))
d2 = d1 - (σ * sqrt(T))
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(C/P) Option Price/Market Price |
The mark price of the call/put option (or bid/ask when calculating bid/ask IV) |
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(K) Strike Price |
The strike price of the option |
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(F) Forward Price |
Forward price for the option expiry |
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(T) Time Until Expiration |
The amount of time in years until the expiry of the option. Example: If an option expires in 1 day and 17 hours, the time to expiry is (1+(17/24))/365 = 0.00468 years The full amount of time is included in the calculations. |
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(σ) Volatility |
The IV of the option. The standard deviation the underlying asset's returns. |
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(N) Normal Distribution |
The standard cumulative normal distribution function |
Allowed Trading Bandwidths
Option trades are limited by a combination of 2 parameters
The highest potential value of the contract given a 6% price move up with a volatility range up scenario and the lowest potential value of the contract given a 6% price move down with a volatility range down scenario.
Orders beyond the bandwidth will not be accepted. This approach ensures that the trading limits reflect both the potential risk associated with the option contract and the need for market stability.
If market circumstances require so, bandwidth parameters could be adjusted at the sole discretion of Deribit.
Order Types
Currently, only limit orders (not market orders) are accepted by the matching engine. Additionally, an order can be a “post-only” order; however, this functionality is not available for advanced order types (explained below).
A post-only order will always enter the order book without being instantly matched. If the order were to be matched, our trading engine would adjust the order so that it enters the order book at the next best possible price.
Example: If a trader places a post-only buy order at 1 USDC, but there is an offer at 0.9999 USDC, the price of the order will be automatically adjusted to 0.9998 USDC, so that it enters the order book as a limit order.
Volatility Orders
For Linear USDC Options, volatility orders are supported as well. The trader can submit them by checking "Advanced Order" on the order form.
Volatility orders are orders, with pre-set constant implied volatility. This type of order makes it possible to market-make options series without additional market maker applications.
The forward price will be used as the underlying price for calculating IV orders.
Mistrade Rules
Due to various reasons, there can be a situation when options are traded at prices caused by an abnormal non-orderly market, with a high chance that one side of the trade has been done unwillingly. In such cases, Deribit might adjust the prices or reverse trades.
Price adjustments or reversal of options trades will be done only if the traded price of the options contract was further than mistrade correction value away from the theoretical price of the underlying options contract.
If a trader realizes that a trade has been executed at a price regarded as mispriced, he should write an email to the exchange (support@deribit.com) asking for a price adjustment as soon as possible.
The theoretical price of the option is the mark price, though it is difficult for the exchange to have the mark price exactly matching the theoretical price at all times. Therefore, in case of a disagreement about the theoretical price, this price will be determined by consulting with primary market makers on the platform. If there is any disagreement, Deribit will follow their recommendations as to what was the theoretical value of the option at the moment of the trade.
A request for a price adjustment has to be made within 2 hours after the execution of the trade. If for whatever reason the counterparty has already made a withdrawal of funds, and Deribit is not capable to retrieve enough funds from the counterparty, a price adjustment will only be made for the amount that was retrievable from the counterparty account. The insurance fund is not meant and will not be used for funding mistrades.