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How Does a Decentralized Exchange (DEX) Typically Handle Options Contracts?

A Decentralized Exchange (DEX) handles options contracts through smart contracts on a blockchain. Instead of a central clearing house, the contract terms, collateral, and settlement are enforced automatically by code.

This allows for peer-to-peer trading and often uses tokenized options.

How Does an AMM Differ from a Centralized Exchange (CEX)?
How Do Decentralized Exchanges (DEXs) Utilize Smart Contracts to Bypass Traditional Brokers?
What Is a Decentralized Exchange (DEX)?
What Is a Decentralized Exchange (DEX) and How Does It Differ from a Centralized Exchange (CEX)?