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FAQ: Covered Call Options (CCOs)

  • How do I buy Covered Call Options?
CompliFi dapp offers CCOs on a number of underlying assets, including ETH, BTC and MATIC. For each underlier, you can choose from a range of strikes and maturities.
All trading pairs are CCO vs its wrapped underlying assets. For instance, you can trade BTC options vs WBTC.
  • Can I sell from my CCO position anytime?
Yes, you can sell your options back to the protocol at any time. Alternatively, you can wait for settlement and collect your winnings without fees.
  • Can I buy into multiple CCOs of the same asset?
Yes, there is no restriction on which options you can hold.
  • What happens at settlement?
Your options position is closed and the protocol automatically calculates your winnings. They will be displayed in the "Settled" column of the dapp and ready to be redeemed.
  • Are CCOs fully backed by collateral?
Yes, each option you buy is backed by 1 unit of its underlying asset, e.g. 1 BTC Call is backed by 1 BTC. As a result, there is always enough collateral to cover your winnings.
  • Can CCOs end up being worth zero?
Yes. At expiry, if the price of underlying asset is below the options' strike price, the option will settle at zero and your position will be closed.