🛴FAQ

Where does the yield come from?

Yield on Rysk comes from the premium paid by option buyers when users sell covered calls or cash-secured puts. The APR is the premium annualized and is paid instantly after trade execution.

Who is the counterparty?

Anyone can act as a counterparty on Rysk by integrating and responding to quotes through the RFQ system. All trades are fully collateralized, and the premium is displayed to the user before execution and paid upfront once the trade is confirmed. Funds from both sides remain locked in smart contracts until expiry, eliminating counterparty risk. Because settlement is handled automatically by the protocol, it does not matter who the counterparty is.

What is the cap? The cap defines the maximum size available for users to open strategies at a given time. Caps expand progressively as liquidity and counterparties increase.

Can positions be closed before expiry? Not yet. Rysk is developing a secondary market that will allow users to buy back or offset open positions before expiry.

Does it matter if price touches the strike before expiry? No. Settlement is determined solely by the price at expiry. Price movements before that do not affect the outcome of the position.

Is collateral safe? Yes. All positions are fully collateralized, and collateral remains locked in Rysk smart contracts until expiry. Settlement is automated, and counterparties never have access to user funds.

When and how are funds settled at expiry?

Settlement on Rysk is fully automated. No user action is required, and funds are sent directly to the user’s wallet. Settlements are typically processed within about two hours after expiry, which occurs at 8:00 AM UTC.

How is the APR calculated?

The APR displayed in Rysk’s interface represents the annualized value of the upfront premium paid by the counterparty. It is calculated from the actual premium received, normalized to a yearly rate based on the time to expiry.