re: Official CryptoTalk Thread

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They are smart contract based. So yes it’s not insured but it is a smart contract on ethereum.

You are currently trusting the institution to be solvent on your current options. With hegic - you can see it all if you know where to look and hetoro and dune analytics makes it easy to see.

There could be a bug in the contract or hack in the protocol, or their liquidity pool backing the options could drain / suddenly withdraw but it’s been pretty stable. The options contracts are about 6 months old so I’d say it’s pretty solid.

Also, I’ve staked tokens in hegic and made a good return on what I put in for the timeline.

The liquidity providers are paid half the options cost so there is an incentive to leave your token there, the hegic stakers paid the other half.

At that price per option I’d buy those too

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I'm trusting the CFTC, clearing house and crime insurance due to where I trade these. So the settlement of my trade is guaranteed, or likely bailed out by FedGov. The options settlement is guaranteed by the clearing house, not the counter party. Both exchanges are federally regulated. And both carry crime insurance. Theft, cyber hacking, etc.

The one thing you bring up that might be of interest to me is providing liquidity on some of these other exchanges.

But to me, the safety of all of the other exchanges, other than LedgerX, and the full future's contract would require research into each exchange, and asking questions that some probably couldn't answer. Such as the above questions I already have answers to.

Regarding the portion about the options I've purchased to go long, and excluding my protective puts, I'll post some of my positions when I have them fully developed and legged. I have a couple, but I need to buy some additional calls before I post to preserve the pricing I'm getting. They're not small positions, and they are negotiated trades, so need to keep that quiet for now.