[benreesman]

Depends on the size. At retail size counterparty risk of e.g. Binance or FTX is a talking point, not a legitimate concern.

If you want to take a big position, talk to someone like Wintermute who has a big OTC desk, or if you want a better deal, find a friend of a friend. Someone you know knows a whale.

[mattnewton]

I mean, my use of belly up is definitely hyperbole. But, that the position of say, 12,000 usd per coin expiring in December is a huge enough dip from current prices that it is likely to come true only in the event of a large crash, and during the last crash Binance froze withdrawals and there was a large backlog of “stuck” transactions on the blockchain. I don’t know how these options execute but if I have to move bitcoin on the blockchain to unwind the position I would be afraid of being able to actually unwind it at the most favorable price in a time window, making the risk actually higher than typical models. Or maybe I dont know what I am talking about and Binance options wouldn’t need to actually move coins on the chain to close out the position?