What is an option ?


After Maturity


At ETH price $200, Alice deposited 1 ETH in the contract

To create a call option at ETH $210 to be exercised in a month’s time, and she priced the option at $10.


Bob, thinking that ETH price is going to increase

Bought the call option at $10; he could choose to make the payment in either ETH, stablecoins or other tokens supported in the swap.


At the end of the month, ETH price increased to $250

Bob decides to exercise the call option; he could choose to transfer $200 to Alice in exchange for the 1 ETH that Alice put in deposit; or alternatively, he could choose to only gain the profit, which is the current ETH price minus the strike price.


After the physical asset or cash gain is settled

The option position is closed.

userwallet User Wallet User Wallet Chromia Layer2 Ethereum Blockchain Settlement Layer

Token storage is non-custodial, which means only a user can withdraw his funds.

Money is moved between users’ accounts only when they trade or exercise option contracts. Protocol is free from counterparty risk. Since it’s impossible to algorithmically assess credit-worthiness, Hedget requires all options to be fully collaterized.


Ethereum smart contract which handles ETH and ERC-20 token deposits and withdraws and implements physical settlement.


Chromia-based blockchain (dapp) which handles trades, track ownership of contracts and facilitates communication necessary to perform settlement through Ethereum smart contracts.


Client-side wallet and trading user interface, which takes commands from user and carries them out using Ethereum smart contract and Chromia dapp.