Introduction to PerpOptions

PerpOptions are European-style Options contracts based on Bybit TradFi Perpetuals, making Bybit the first crypto exchange to offer Options on Perpetual contracts. They provide 24/7 exposure to traditional financial assets, including stocks, indices, and ETFs. All contracts are cash-settled in USDT at expiry, with no physical delivery.

Built within Bybit’s existing Options framework, PerpOptions support both Cross Margin and Portfolio Margin under the Unified Trading Account (UTA). Traders can manage Perpetual and Options positions in one account and use strategies such as delta hedging, covered calls, and protective puts.

Key Features

1. Trade Options on Perpetual contracts on the first crypto exchange to offer this product
2. Trade 24/7, including weekends and public holidays
3. Access PerpOptions through your Unified Trading Account (UTA) without opening a traditional brokerage account
4. Use Cross Margin or Portfolio Margin and delta-hedge Perpetual and Options positions within the same account
5. Trade fractional lot sizes with a lower entry threshold than traditional Options contracts
6. Trade European-style contracts with no early exercise or physical delivery

Differences Between Crypto Options and PerpOptions

The table below summarizes the key differences between Crypto Options and PerpOptions.

Underlying Assets

PerpOptions use Bybit TradFi Perpetual contracts as their underlying instruments. Each option is linked to a corresponding TradFi Perpetual contract that tracks a traditional financial asset.

Supported Underlying Asset Categories

Stocks

1. Individual stocks, such as TSLA Perp, NVDA Perp, AAPL Perp, and AMZN Perp
2. Coverage across different sectors and market capitalizations

Indices

1. Major indices, such as QQQ Perp, which tracks the Nasdaq-100, and SPX Perp, which tracks the S&P 500
2. Broad market exposure through index-based instruments

ETFs

1. Popular ETFs, such as GLD Perp for gold-related exposure
2. Coverage may include sector- and commodity-linked ETFs

Contract Specifications

1. Settlement Asset: All contracts are settled in USDT
2. Mark Price: Based on a continuously updated 30-minute Time-Weighted Average Price (TWAP) of the underlying index
3. Settlement Method: Cash settlement only; no physical delivery

Settlement Price

At expiry, the Settlement Price is calculated using the final 30-minute TWAP based on the same index methodology. It is used to automatically cash-settle in-the-money (ITM) options.

Fees

PerpOptions use a separate fee schedule from Crypto Options. Maker and taker fee rates vary according to your VIP or Pro level.

Note: Trading fees for TradFi PerpOptions are calculated based on the notional value of the underlying asset and are subject to a fee cap, which can never be higher than 7% of the Option Premium.

Trading Fee Formula:

Trading Fee = min (Fee Rate × Notional Value per contract, 7% × Option Premium per contract) × Number of Contracts

Examples

Scenario 1 (Non VIP)

Trader A buys one META Call Option as a taker. The underlying notional value is 620 USDT, and the Option Premium is 2 USDT.

Trading Fee = min (0.0300% x 620.00 , 7% x 2.00) x 1

= min (0.186 , 0.14) x 1

= 0.14 USDT

Since the fee calculated based on the notional value (0.186 USDT) exceeds the fee cap 7% (0.14 USDT), the fee is capped at 0.14 USDT.

Scenario 2 (Pro 6 Level)

Trader B (Pro 6 Level) sells five NVDA Call Options as a maker. The notional value is 120 USDT per contract, and the Option Premium is 2 USDT per contract.

Trading Fee = min (0.0050% x 120 USDT , 7% x 2.00) x 5

= min (0.006 , 0.14) x 5

= 0.006 x 5 = 0.03 USDT

Since the fee calculated based on the notional value (0.006 USDT per contract) is lower than the fee cap 7% (0.14 USDT per contract). Trader B is therefore charged a total trading fee of 0.03 USDT.

Corporate Actions

Corporate actions may affect PerpOptions when the underlying stock undergoes an event such as a stock split, dividend, or merger. Bybit automatically adjusts affected positions where applicable. Unless otherwise stated, no action is required from you.

Benefits of Automatic Adjustments

1. Reduces unexpected settlement outcomes
2. Helps preserve the economic exposure of affected positions
3. Removes the need for manual position adjustments
4. Provides a consistent approach across supported corporate actions

Stock Splits

The contract size will be adjusted while the position’s economic exposure is maintained.

Formula

Note: The Mark Price remains continuous throughout the split adjustment, without abrupt price jumps.

Dividends

Regular Dividends

1. No separate position adjustment is generally required
2. Expected dividends are reflected in the TradFi Perpetual contract through the applicable dividend schedule
3. Market prices reflect prevailing dividend expectations. The position value changes in line with market pricing

Special Dividends

1. Treated as a corporate action when the distribution exceeds the applicable threshold
2. Processed automatically according to the applicable corporate action rules
3. Affected positions are adjusted to preserve their economic exposure, where applicable

Mergers, Delistings, and Other Events