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How Does ‘Double-Spending’ Directly Impact an Options Contract’s Collateral?

Double-spending invalidates the funds securing an options contract, leading to a loss for the counterparty as the collateral is no longer genuinely held.
Greeks.Live20.11.25

How Does ‘Double-Spending’ Directly Impact an Options Contract’s Collateral?

Double-spending occurs when a user successfully spends the same cryptocurrency in two different transactions. If the collateral for an options contract is double-spent, the contract's backing becomes invalid.

This leaves the counterparty exposed to a loss, as the funds securing the contract are no longer genuinely held. Robust consensus mechanisms like PoA are designed to prevent this by ensuring transaction immutability.

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