Why Is a Crypto Option on a Smaller Altcoin More Likely to Be Traded via RFQ?

Options on smaller altcoins are inherently less liquid and often do not have a robust, continuous Central Limit Order Book (CLOB). They also carry higher risk and less standardized pricing.

Consequently, a trader seeking to execute a trade on such an instrument must use an RFQ platform to directly solicit liquidity from specialist market makers. The RFQ process is necessary to find any counterparty willing to price and take on the specific, often large, block risk.