Risk Disclosure

Options are leveraged and complex. A bought option can expire worthless, losing everything you paid for it. A sold option can lose far more than the premium you received, and a portfolio can lose more than the cash in your account. Only trade with money you can afford to lose, and only once you understand how the products you trade behave.

Past prices, quotes and results shown on Strike say nothing about future results.

• An option’s price can move much faster than its underlying, in either direction, especially close to expiry.
• The price you pay includes the spread between the bid and the ask. Buying and immediately selling back usually loses that spread; a position can show a loss the moment it opens.
• Liquidity can be thin, quotes can widen or disappear, and an order may not fill, or may fill at a worse price than shown, particularly in large sizes, far from the money, near expiry or around news.
• Where a contract has no quotes, the mark shown is a model estimate, not a price you can trade at.

Strike lists options around the clock, including nights, weekends and holidays, when the markets behind many underlyings are closed. Prices can gap between sessions, references can be stale or thin outside their home market’s hours, and positions can be liquidated at any hour, including while you are away.

Every contract on Strike is cash-settled in USDC. You never own, receive or deliver the underlying stock, index, company, compute or cryptoasset, and you have no rights in it.

• Prices come from reference sources, such as perpetual futures markets and price indices, which can differ from prices elsewhere, be manipulated, lag, fail or stop.
• Pre-IPO underlyings track prices of private companies on reference markets. These are thin and volatile, can differ widely from any later listing price, and may stop if the reference market stops.
• Compute underlyings track indices of GPU rental prices, which can be revised or discontinued.
• If a reference fails at expiry, settlement may use a fallback source or an operator-reviewed price.

• Positions that can lose more than their premium need margin. Requirements are computed by Strike’s risk model and can rise suddenly, for example when prices or volatility move.
• If your account falls below its requirement, Strike may cancel your orders and close your positions without notice, at prices that may be far from the last mark, and charge any costs to your account.
• Where a closed-out account cannot cover its losses, an insurance fund may absorb them; if it cannot, positions on the other side may be reduced (auto-deleveraging) and losses may remain on the account.
• Margin rules, limits, open-interest caps and fees can change, sometimes without notice in fast markets.

Trades on Strike are with other participants, including market makers who quote prices to profit from the spread and from their positions. Market makers on Strike may include parties affiliated with Strike Labs Ltd.. They are not your advisers and their interests are opposed to yours on every trade.

• Parlays combine several outcomes; all must happen for a slip to pay, and the price reflects the chance they happen together, as estimated by Strike. Cashing out before settlement returns less than the slip’s fair value.
• Strategies and vaults run automated positions on your behalf under rules you approve. They can lose money, roll at unfavourable prices, or be unable to act when markets are unavailable.
• Products may change, be paused or be withdrawn.

Deposits are held in a smart contract on Arbitrum. Trading runs on Strike’s off-chain matching engine, and the ledger it keeps is checked with zero-knowledge proofs and a quorum of independent attesters before withdrawals are released. These checks show that balances add up and that withdrawals were authorized by their owners. They do not prove that prices were fair, that orders were matched in the right order, or that liquidations were correct.

• Smart contracts, proofs, attesters and the software around them can contain bugs or be attacked, and funds can be lost.
• Withdrawals are processed in batches and can take minutes or longer; they can be delayed by network congestion, proof or attester outages, or the emergency exit procedure.
• Funds are held in USDC, a stablecoin that can lose its peg or be frozen by its issuer.
• Deposits and withdrawals through Hyperliquid or other networks depend on those networks and carry their own fees and risks.

You control the wallet you trade from. Anyone with access to it, or to a trading session it approves, can trade your account; lost keys cannot be recovered by Strike, and transactions on a blockchain cannot be reversed.

• The venue, website, APIs, data feeds and the networks they depend on can be slow, wrong or unavailable. You may be unable to place, change or cancel orders when you want to.
• Strike may halt trading in a market, cancel orders, or take other action to protect the venue; cancels remain available where possible.
• Strike is in closed beta. Features, limits and parameters change often, and errors are more likely than in a mature service.

Strike is not registered as an exchange, broker or investment adviser in any jurisdiction, and you do not have the protections such registration would bring. Laws on derivatives and crypto change, and a change can limit or end your access. You are responsible for following the laws that apply to you and for your own taxes. Nothing on Strike is investment, legal or tax advice.