Skip to main content
Learn

How Does a Cash-Settled Option Differ from a Physically-Settled Option On-Chain?

Cash-settled pays the difference in value; physically-settled requires the transfer of the underlying asset.
Greeks.Live06.11.25

How Does a Cash-Settled Option Differ from a Physically-Settled Option On-Chain?

A cash-settled option pays the difference between the strike price and the spot price in a stablecoin or cryptocurrency. A physically-settled option requires the actual delivery of the underlying asset upon exercise.

On-chain, the smart contract for a cash-settled option only needs the final price data to calculate the payment, while a physically-settled option must also manage the transfer of the underlying asset.

What Is the Primary Difference between Cash-Settled and Physically-Settled Crypto Futures?
How Does a Clearing House Handle Settlement for Physically-Delivered Vs. Cash-Settled Futures?
How Does a Token Allowance Differ from a Direct Token Transfer in a DeFi Transaction?
What Is the Difference between the ‘Pay-Per-Share’ (PPS) and ‘Proportional’ (PROP) Reward Systems in Mining Pools?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.