Skip to main content
Learn

How Does “Delivery Risk” Apply to Physically-Settled Crypto Options?

Delivery risk is the operational risk of technical issues or failure to transfer the underlying crypto asset upon exercise.
Greeks.Live03.11.25

How Does “Delivery Risk” Apply to Physically-Settled Crypto Options?

Delivery risk refers to the potential problems associated with the actual transfer of the underlying cryptocurrency upon exercise. This can include technical issues with wallet transfers, delays in the blockchain network, or the risk of the seller not possessing the crypto to deliver.

It adds a layer of operational complexity not present in cash-settled options.

What Is the Key Difference between Cash-Settled and Physically-Settled Futures Contracts?
How Does a Clearing House Handle Settlement for Physically-Delivered Vs. Cash-Settled Futures?
What Is the ‘Delivery Period’ for Physically Settled Futures Contracts?
How Does a Cash-Settled Option Differ from a Physically-Settled Option On-Chain?

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.