Trader Risks
This page provides some general warnings about the risks involved in trading on Lyra


The Lyra protocol should be considered experimental software and you should interact with it at your own risk. Do not use any funds you cannot afford to lose. We have taken all precautions to minimize risk to our users but we cannot guarantee the safety of the protocol. Two specific risks to consider are:
  1. 1.
    There is currently no delta hedging. This means the returns of the market will be correlated with the returns of the base asset.
  2. 2.
    There are no slippage controls on the dapp or at the smart contract level. This means execution price could be significantly different to the expected price.

Trading Cutoffs

The Lyra protocol enforces trading cutoffs to ensure that the mechanism remains accurate and performant. This has some important implications for traders:
  • Traders will not be able to trade with the AMM for options with <24 hours to go expiry, including closing trades.
  • Traders will not be able to trade with the AMM for options with deltas outside the specified cutoff for a given asset, including closing trades. For example, imagine that the delta cutoff range for an asset is 15-85 delta. A trader might open a trade buying a 50 delta call, if the price of the underlying asset rises and the option becomes 90 delta, the trader will not be able to close with the Lyra AMM unless it falls back below 85 delta. Note that if an option falls outside of the delta cutoff range, and then returns to the tradeable range, the option will once again be tradeable with the Lyra AMM.
See here for more details.


Optimistic Ethereum is a complex layer two scaling solution and is under constant development and iteration. Downtime is to be expected as the Optimism team continues to upgrade the network over the coming weeks and months.