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In Options Trading, How Does Settlement Finality Relate to the Risk of a Chain Fork?

Settlement finality is the guarantee that the exercise or expiration of an options contract is irreversible. A chain fork introduces the risk that the settlement transaction could be reversed or that the oracle price used for settlement is invalidated on one of the chains.

This uncertainty is unacceptable in options trading, which requires precise, non-disputable execution. Strong finality, which a high fork cost promotes, is necessary for trustless, on-chain options.

What Is ‘Transaction Finality’ and How Does It Differ across Various Blockchain Architectures?
What Is the Difference between a Soft Fork and a Hard Fork in Response to a Chain Reorganization?
Why Is High Throughput and Fast Finality Critical for Institutional Derivatives Platforms?
What Is a Soft Fork, and How Does It Differ from a Hard Fork in Blockchain Upgrades?