Hedget Development Update: Alpha V3 with Auto-Exercised Options

We are continuing our rapid development pace on the road to releasing our Beta. The newest release of Hedget Alpha V3 introduces a very important milestone: Cash settled call options with auto-exercise.

This is a first for any options platform on Binance Smart Chain, and we are only aware of one other platform offering this feature on Ethereum. Let’s talk a little about how it works and how it will help users.

With cash settled call options, both the option fees and profit and losses are denominated in USDT. This means that Hedget option buyers will not have to worry about holding BTC, ETH, or any other asset on hand in their trading wallet to place put options. The order flow will now work like this:

1) The user buys call or put options using USDT to pay the option premium

2) Options are set to ‘auto-exercise’ by default. The settlement price will be sourced from Hedget’s price oracle.

3) At option maturity, any profitable option position will be paid out in USDT. Users will simply need to sign a transaction any time after maturity to finalize the transaction and be paid their profits.

4) Aside from the initial purchase of the option and claim of profits, no further actions are required from the user!

As you can imagine, this feature will make our platform far easier to use and much more intuitive. When coupled with the low transaction costs on BSC and well as L2 Ethereum scaling with Chromia, we believe Hedget will rapidly become the go to option for Cryptocurrency options traders.

*Please note, option writers will still require underlying assets like BTC and ETH to offer call options. This applies largely to Market Makers — end users will be able to trade both kinds of options using USDT only.