Lifecycle and Settlement
Exercise
When using an option may make sense.
Start here
Exercise means using the right defined by the option, if the contract terms allow it.
1
When it may make sense
- A call may be worth exercising when the skin is above the strike plus costs.
- A put may be worth exercising when the skin is below the strike minus costs.
- Premium is already paid, so focus on the remaining economics.
2
What can block exercise
- Expiry has passed.
- Required signatures are missing.
- Custody checks fail.
- Steam or network restrictions interfere.
- Beta controls pause the flow.
3
Before exercising
- Check strike, reference price, fees, and time left.
- Review wallet prompts.
- Confirm settlement terms.