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What Are the Primary Risks Associated with On-Chain Settlement of Large Derivatives Trades?

Transaction delays, high gas fees, smart contract risk, and public information leakage of trade details.
Greeks.Live14.11.25

What Are the Primary Risks Associated with On-Chain Settlement of Large Derivatives Trades?

Primary risks include transaction finality delays, high network transaction fees (gas costs), and potential smart contract vulnerabilities. Additionally, the public nature of the blockchain can lead to information leakage about large trades, which institutional traders prefer to avoid.

There is also the risk of human error in wallet addresses leading to loss of funds.

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