What Are the Technical Limitations of Implementing Atomic Swaps for Complex Derivatives?

Atomic swaps are primarily designed for simple, direct exchanges of native cryptocurrencies. Implementing them for complex derivatives, which involve variable terms, cash flows, and settlement logic, is technically challenging.

The complexity of the smart contract needed to replicate the payoff profile of an option or future can introduce new vulnerabilities and requires significant computational resources and standardization across different blockchains.