RUNNER

Risks ​

Read this before you trade. Each of these comes with the product itself.

Buying ​

  • You can lose the whole premium. If the option never becomes worth exercising or selling, it decays toward nothing.
  • Decay works against the holder. Your quantity halves every half-life of the market you hold it on. A correct view that arrives late pays less, and a short half-life loses half your position quickly.
  • The underlying can go to zero. Meme tokens can lose all of their value quickly, and a call on a token that has gone to zero is worth nothing.
  • Thin markets. New tokens can have little depth. The price you can sell back at may be far from what you paid, and there may be no bid at all.
  • Market orders move the price. A buy walks the book until it is filled. The desk bounds that walk with SLIPPAGE, which defaults to 45% on option premium. Lower it if you would rather not fill than fill high.
  • Leverage magnifies losses too. A small premium controls a large notional. The leverage figure before you buy is the notional over the premium; it is also how fast the premium can go to zero.

Writing ​

  • A call writer gives up the upside. If the token rises past the strike, holders exercise and you deliver your tokens at the strike.
  • A put writer pays the strike for a falling token. If the token falls below the strike, holders exercise and you pay the strike for tokens now worth less.
  • You can be assigned at any time. Every writer in a pool is assigned by the same fraction when a holder exercises. You cannot opt out of an exercise while you are short.
  • Your collateral is locked while you are short. It comes back as your obligation decays, when you buy back, or as exercise proceeds, and only once it is paid out. See Assignment and payouts.

Using Runner ​

  • You sign every transaction. The desk and any bot sign in your wallet. Runner never holds your keys, and cannot reverse a transaction you signed.
  • Token-2022 transfer fees. Some mints charge a fee on every transfer. What lands on a deposit or a withdrawal can be less than what you sent; the desk states the figure before you sign.
  • The protocol can be paused. An admin key can pause listing, opening, trading, deposits, withdrawals or settlement, protocol-wide. While trading or settlement is paused you cannot sell or exercise; cancelling and closing empty slots always work.
  • Software risk. Runner is a program on Solana. A defect in it, in a token's mint, or in Solana itself can lose funds.