Linear USDC options (Global Derivatives)

• European style options are exercised automatically at expiration and cannot be exercised before.

• Option positions can still be closed before expiration through open market trading.

At expiration, 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.

• The implied volatility (IV) 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).

• 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

In your transaction history, a settled in-the-money option shows two entries: a settlement entry, when the option converts into a futures contract at the strike price, and a delivery entry, when that contract settles in USDC. An option that expires worthless shows an expiry entry.

Expiration price: The time-weighted average of the index from 07:30 to 08:00 UTC.

Fees: To see any fees charged when an option settles, check History in Coinbase Advanced.

Example: You hold 1 BTC call with a $100,000 strike. At expiry, the expiration price is $125,000. The option settles for $25,000 USDC, added to your balance.

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 the delivery price minus the strike price: 275 - 250 = 25. As Solana has a multiplier of 10, the total amount of 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 a strike price above 275 USDC expires worthless.

Buying a put option

• A trader buys a SOL put 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 put option represents the right to sell 10 SOL for 250 USDC each.

• 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 25 USDC per 1 SOL. This is the strike price minus the delivery price: 250 - 225 = 25. As Solana has a multiplier of 10, the total amount of 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 an in the money option happens automatically at the expiry. You cannot exercise the option yourself, or exercise it before the expiration. However, option positions can still be closed before expiry though by trading them in the open market.

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.

Selling a put option

• A trader sells a SOL put 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 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.

Contract details: To see an option's contract size, minimum order size, tick size, price source, and settlement currency, select the Market info widget on web or Market info tab on mobile in Coinbase Advanced.

Underlying asset / ticker

• BTC: Deribit BTC_USDC Index*

• ETH: Deribit ETH_USDC Index*

• AVAX: Deribit AVAX_USDC Index

• HYPE: Deribit HYPE_USDC Index

• SOL: Deribit SOL_USDC Index

• TRX: Deribit TRX_USDC Index

• XRP: Deribit XRP_USDC Index

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.

Type: Linear

Category: Option

Trading hours: 24/7

Quoted currency: USDC

Margin currency: USDC

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.

Contract multiplier: Each contract represents a set amount of the underlying asset, which varies by asset. For example, 1 SOL contract represents 10 SOL.

Contract multiplier values:

• BTC: 1. Each contract represents 1 BTC. Fractional contracts are possible.

• ETH: 1. Each contract represents 1 ETH. Fractional contracts are possible.

• AVAX: 100. Each contract represents 100 AVAX.

• HYPE: 10. Each contract represents 10 HYPE.

• SOL: 10. Each contract represents 10 SOL.

• TRX: 10,000. Each contract represents 10,000 TRX.

• XRP: 1,000. Each contract represents 1,000 XRP.

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 (BTC, ETH): 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 (BTC, ETH): 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)

  • Short call (AVAX, HYPE, SOL, TRX, XRP): 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 (AVAX, HYPE, SOL, TRX, XRP): 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)

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 profit and loss (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 (BTC, ETH): 0.075 * Index + Mark Price of the Option

  • Short put (BTC, ETH): 0.075 * MIN(Index , Strike) + Mark Price of the Option

  • Short call (AVAX, HYPE, SOL, TRX, XRP): 0.1 * Index + Mark Price of the Option

  • Short put (AVAX, HYPE, SOL, TRX, XRP): 0.1 * MIN(Index , Strike) + Mark Price of the Option

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.

Delivery price: Time-weighted average of Deribit index as measured between 07:30 and 08:00 UTC.

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.

Exercise settlement value:

• Exercise of a 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.

Settlement method: Cash settlement in USDC.

Settlement / Expiration dates: Daily at 08:00 UTC

Position limit:

• Standard margin account:

  • Maximum total short option position size: 1,000,000 USDC

Order types:

• Limit orders

• Market limit orders

• IV orders

Trading bandwidths: Determined by the risk management and based on a risk matrix.

Mistrade correction value: 10% of the index price away from the mark price.

* 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 Standard and Portfolio margin accounts, though, the USDC/USD exchange rate is still used to calculate equities and margin balances in USD terms.

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))

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.

Market orders aren't supported. You can place limit, market limit, and IV orders. Limit orders can be post-only, but IV orders can't.

A post-only order will always enter the order book without being instantly matched. If the order were to be matched, the trading engine would adjust the order so that it enters the order book at the next best possible price.

You can also place volatility (IV) orders. In the order form, change the Limit Price unit from USDC to IV.

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.

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 the mistrade correction value away from the theoretical price of the underlying options contract.

If you think a trade was executed at a mispriced level, contact Coinbase Support 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 of retrieving 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.