Risks

In-The-Money Principal Risk

Selling options is not a risk-free yield source. This is a trade – in the case that the options are in-the-money, the option buyer is profitable and may choose to exercise at the strike price.

Depositing into 3Jane is like making a deal where you get some extra money now for giving someone the option (calls) to buy your ETH at a fixed price (strike price) later. If the price doesn’t go up much, you keep your ETH and the extra money. If the price goes up a lot (in-the-money), you sell your ETH at the agreed price and keep the extra money. It’s a way to earn some extra income, but it means you might miss out if the price skyrockets.

The option seller may lose principal as a result.

Read more:

1. Covered Call Risks

2. Short Put Risks

Smart Contract Risk

3Jane V1 contracts are a fork of the Ribbon Theta Vaults. Ribbon vaults have been audited by OpenZeppelin and ChainSafe. 3Jane includes minor changes to the codebase which were further audited by Veridise.

Collateral Risk

eETH is not a risk-free collateral asset. Read more.