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In Crypto Derivatives, How Does Network Congestion Affect the Execution of Options Hedges?

Network congestion leads to slower transaction confirmation times and higher gas fees. This delay can prevent a market maker from executing their necessary delta or vega hedges in a timely manner, exposing their portfolio to significant unhedged risk.

The increased gas costs also erode the profit margins of the trade, especially for frequent rebalancing.

How Do High Gas Fees Specifically Affect the Pricing Models of Options Contracts Deployed as Smart Contracts?
What Is the Difference between Gas Limit and Gas Price?
How Does Network Congestion Affect Gas Fees for Smart Contract Execution?
Do High Gas Fees Disproportionately Affect American-Style Options Compared to European-Style Options Due to the Exercise Flexibility?