Writing Covered Quotes
Covered Quote Mechanics
What writers commit to when quotes are covered.
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Covered quotes are backed by inventory, collateral, or both. The writer receives premium and accepts the quote obligation.
1
Covered calls
- The writer backs the call with an eligible skin.
- If the call is exercised, the writer may need to settle under the quote terms.
- The writer may give up upside above the strike.
2
Covered puts (public beta)
- Where supported, the current covered put model is tied to a registered skin receipt controlled by the writer and backed by USDC collateral equal to the strike.
- Put buyers do not deliver the underlying skin in this model; in-the-money puts are cash-settled according to the accepted quote terms.
- Put writer availability, collateral requirements, co-signing, and settlement paths can be limited by beta controls.
3
Writer checklist
- Know the maximum obligation.
- Know when inventory or collateral unlocks.
- Do not quote if you need instant withdrawal.