> For the complete documentation index, see [llms.txt](https://docs.callput.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.callput.app/start-here/why-trade-on-callput.md). # Why trade on callput ## Why trade on Callput Callput offers request-based onchain options on Base. Live crypto markets are BTC and ETH. Synthetic TSLA, QQQ, SPY, EWY, NVDA, COIN, SKHY, SPCX, and MU option rows are available only when the canonical feed lists active expiries. Check availability before every trade. CRCL and SAMSUNG are reference-only, not tradable option markets. Callput stock and ETF options are synthetic onchain options. They reference market prices but provide no shares, ETFs, broker-listed options, dividends, voting rights, issuer ownership, or physical delivery. ## The short answer Traders use Callput for three reasons. * more exposure per dollar deployed than spot trading or fully funded directional positions * higher effective leverage through option premium and defined-risk spread structures * option pricing built from IV, futures, spot, rates, and protocol-side risk adjustments rather than a flat retail markup ## 1. Capital efficiency is built into the product structure Callput does not require traders to buy full spot notional in order to express a view on BTC or ETH. In the current strategy model: * long calls, long puts, and long spreads are funded with premium, typically in USDC * short calls are backed by underlying collateral * short puts and short spreads are backed by USDC collateral This matters because the economic exposure of an option is usually larger than the premium paid to enter it. A trader can express a bullish or bearish view, or structure a defined payoff range, without tying up the same capital that would be required to hold the equivalent spot exposure. For spreads, capital efficiency improves further because the second leg narrows the payoff profile and lowers the required upfront debit or collateral compared with a naked option in the same direction. Read more in [Instruments, strategies, and collateral](/traders/instruments-strategies-and-collateral.md). ## 2. Callput offers high effective leverage by design Leverage on Callput does not come from margin borrowing in the usual spot sense. It comes from the payoff structure of options. If a trader buys an option or a debit spread: * the maximum loss is typically limited to the premium or net debit paid * the directional exposure can be meaningfully larger than that upfront cost * the trader can target a view on volatility, convexity, and time, not only spot direction That is why the same amount of capital can control a larger amount of directional exposure than an outright spot purchase. In practice, traders use Callput when they want more exposure per unit of deployed capital, while keeping losses explicitly bounded for long-option structures. Defined-risk spreads extend this further. They let a trader shape the payoff curve and reduce upfront cost while preserving a directional thesis. Callput therefore suits users who want high leverage with explicit structure rather than open-ended margin usage. ## 3. Pricing is designed for options, not for generic crypto wrappers Callput's public market feed is built from an option-specific pricing pipeline. The pricing stack uses: * futures reference prices * spot indices * implied volatility data * risk-free rate inputs * protocol-side risk adjustments derived from OLP exposure When direct market marks are unavailable, the system can estimate mark IV from nearby strikes and then derive mark price from the pricing model. For spreads, the mark price is derived from the net value of the legs rather than from a single flat quote. This matters because options are not linear products. A useful option price must respond to strike, expiry, volatility, and inventory-side risk. Callput's pricing path is designed around those variables instead of treating every market like a simple swap with a fixed spread. Read more in [Pricing and execution](/traders/pricing-and-execution.md) and [Pricing mechanism](/traders/pricing-mechanism.md). ## 4. Risk premium is request-specific, not a one-size-fits-all surcharge At execution time, Callput does not simply apply one static fee or one static spread to every request. The backend computes directional risk premium from: * the greeks of the new trade * current OLP greeks * moneyness * time to expiry * utility-ratio changes in the vault * volatility score inputs That risk premium is then converted into a request-specific premium amount and written onchain for the relevant `requestIndex`. In other words: * the displayed feed helps a trader discover the market * the final execution price reflects the actual execution context of the request This is a more option-native model than simply quoting one undifferentiated spread for every buyer and seller. ## 5. Callput supports structured expression, not only single-leg speculation A trader is not limited to one product shape. At the protocol level, Callput encodes: * long calls and puts * short calls and puts * call spreads * put spreads That gives traders multiple ways to express the same market view: * directional convexity through long options * yield or premium collection through short options * capped-risk expression through spreads This is important for capital efficiency because the best structure is not always the most capital-intensive structure. In many cases, a spread is the more efficient implementation of the same directional idea. ## 6. The mechanism is transparent enough to trade deliberately Callput is not a black-box quote button. The docs expose: * how positions are opened and closed * how mark price and risk premium affect execution * why a request can be `Executed` or `Cancelled` * why settlement is separate from closing That transparency matters for professional traders, integrators, and agents. It allows them to reason about execution quality, failure conditions, and timing constraints before they submit capital. ## What this means in practice If you are deciding whether Callput is the right venue, the practical answer is: * use Callput when you want more directional exposure per dollar than spot trading can offer * use Callput when you want leverage through option payoff structure rather than through borrowed notional * use Callput when you want spreads and other defined-risk structures instead of only naked exposure * use Callput when you want option prices derived from a volatility-and-risk model rather than from a flat markup ## Read next * [Live scope and markets](/live-scope-and-markets.md) * [Markets](/markets.md) * [Instruments, strategies, and collateral](/traders/instruments-strategies-and-collateral.md) * [Pricing and execution](/traders/pricing-and-execution.md)