Hedge a position

A put is how you protect tokens you already hold. You buy the right to sell that token at a fixed strike, pay for it once, and the most the option can lose is that premium.

The tokens in your wallet and the put are separate positions. Runner does not attach the option to a bag, and it does not sell those tokens when the price falls. If the token falls, the put can be worth more, and that gain is what offsets the loss on the tokens you still hold.

Buy the put

Open the desk at trade.userunner.fun, pick the token, and set the trade panel to SHORT. SHORT buys puts. Type the most you are willing to pay. That number is the premium, the cost of the hedge, and the most this option can lose. Buy a call or put covers the hold, the bets, and confirm.

You need USDC for the premium and a little SOL for the network fee. The desk signs in your wallet.

What you are buying

A put gains when the token trades below the strike. You can sell it on the book, or exercise it. Exercise delivers tokens and receives the strike in USDC. On the desk, that exercise borrows what it needs and can pay you in USDC, so the tokens you were protecting stay where they are. See Calls, puts and exercise.

What the hedge does over time

The size halves every half-life of the market you bought it on. A hedge that matched your bag today is smaller tomorrow, and a move that comes late pays less. There is no funding payment and nothing to liquidate: the premium was paid up front. See The AmPO.

If the token never falls far enough, the put decays toward nothing and the premium is gone. A thin book can mean there is no bid to sell the put into. Risks states both.

The option does not stop the token you hold from falling. It is a second position that can pay you if it does.