> For the complete documentation index, see [llms.txt](https://docs.ichigeki.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ichigeki.app/security/risks.md). # Risks Read this page before trading. It is written to be complete, not reassuring. ## Total-loss risk A bought option can — and often does — expire worthless. If BTC settles on the wrong side of your strike at 08:00 UTC, your entire premium is gone, plus the fees you paid. This is not an edge case; for far-from-the-money daily options it is the most likely outcome. Never spend a premium you cannot afford to lose entirely, and treat every trade as money at full risk from the moment you sign. Daily expiries compress this: there is no time to be early. A thesis that is right tomorrow is worthless at 08:01 UTC today. ## Liquidity risk Resting liquidity on Derive's daily BTC options is thin and patchy (see [Liquidity](/product/liquidity.md)). Consequences: * You may be unable to buy the strike you want, at any price, at a given moment. * You may be unable to **sell an option you hold** before expiry if no bid exists — buy-only entry does not guarantee an exit; you may have no choice but to hold to settlement. * Spreads on thin books are wide; the ask you pay can be far from mark price. * Market orders on a moving book can fill at worse prices than displayed. ## Bridge risk Funding crosses two independent bridges (LI.FI/Across, then Derive's Socket connector). Bridges are historically among the most exploited components in crypto. Additional, mundane failure modes: * The two legs are not atomic; funds can be stranded mid-route pending recovery. * Bridge fees and output amounts can change between quote and execution. * The canonical Robinhood Chain exit via Ethereum has a challenge period of roughly seven days — a fast exit is not guaranteed to exist at any given time. ## Oracle and settlement risk Settlement uses Derive's oracle-based marking. If the oracle's settlement price diverges from prices you see elsewhere — during volatile minutes around 08:00 UTC, this is possible — your payoff is determined by the oracle, not by your chart. Smart-contract risk in Derive Protocol applies to all positions and collateral, non-custodial or not. ## Operational dependence on Derive Derive Protocol's contracts are self-custodial, but the order book, matching engine and API are **operated services** run by Derive. Derive's terms give the operator control over access to that infrastructure. ICHIGEKI cannot guarantee: * continued API or matching-engine access, * continued listing of daily BTC expiries, * execution quality or uptime. If Derive's operated services halt, you keep custody of your positions on-chain, but you may be unable to trade, close, or open until service resumes. ## Interface risk ICHIGEKI itself is software and can have bugs, display stale data during network issues, or be unavailable. Signatures are always shown to you by your wallet — verify what you sign there, not only on the ICHIGEKI screen. ## Geographic restrictions Derive's terms restrict access from certain jurisdictions, and ICHIGEKI applies its own compliance and location controls. If you are in a restricted jurisdiction, you may not use ICHIGEKI, and positions may become inaccessible through the interface if your status changes. Circumventing restrictions is a violation of the terms and entirely at your own risk. ## Regulatory risk Crypto derivatives regulation is unsettled and varies by jurisdiction. Rules affecting Derive, bridges, or interfaces like ICHIGEKI can change with little notice and affect your ability to trade or withdraw. *** ICHIGEKI is a non-custodial interface. Execution, liquidity, margin and settlement are provided by Derive. Options involve risk: a bought option can expire worthless — maximum loss is the premium paid plus fees. Not available in restricted jurisdictions. Nothing here is financial advice. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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