OPX

OPX is the flagship decentralized options protocol created by Epicentral Labs. The protocol enables users to construct, manage, and unwind on-chain options positions through a streamlined, non-custodial interface. OPX abstracts the complexity traditionally associated with options markets and introduces tools that allow users to fully understand, configure, and execute positions from their self-custodied wallets.

The protocol embodies three core design pillars:

• Design
• Experience
• Simplicity

Traditional options trading introduces steep knowledge and execution barriers. OPX reduces this friction by providing intuitive visualization, transparent pricing components, and modular workflows that guide users through each decision without diminishing optionality or sophistication.

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Trade Page — For Option Buyers

Buyers interact with OPX through the Trade Page. This page offers enhanced visibility and configuration options for users who require deeper insight into position mechanics.

The Pro Mode interface displays:

• Available option chains
• Strike prices and expiration dates
• Pricing variables and option Greeks
• Position details and cost metrics
• Liquidation prices and risk metrics

These elements are deliberately structured so users can interpret market conditions without becoming overwhelmed. OPX supports fractionalized exposure, allowing users to size positions dynamically rather than adopting the traditional "one contract = 100 units" convention.

Examples of Fractional Sizing

This granular sizing broadens access and improves capital efficiency, enabling buyers to enter markets according to individual risk tolerances and strategies.

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Option Lab — For Option Sellers

The Option Lab is the OPX module used to create options contracts. Sellers use the Option Lab to configure contract parameters, define collateral requirements, and mint options positions.

The seller workflow consists of three pages:

• Configure
• Provide Collateral
• Review & Mint

Configure Option

Sellers begin by selecting:

• Strike price
• Expiration date
• Position size

The module also presents advanced analytics that inform pricing and risk assumptions, including:

• Historical Volatility
• Risk-Free Rate
• Moneyness metrics
• Estimated Maximum Profit

These values enable sellers to understand how the selected parameters influence potential outcomes.

Provide Collateral

Collateralization ensures that sellers maintain sufficient backing for potential option obligations. This page contains three core components:

Collateral Amount Panel

Sellers select the asset and quantity that will collateralize their position. If the provided collateral is insufficient, the seller may borrow additional coverage from the Option Margin Liquidity Pool (OMLP) to complete the required margin structure.

Leverage Panel

OPX supports up to 10× collateral leverage, enabling sellers to increase position capacity without committing the full notional amount upfront. This mechanism does not introduce custodial risk; all operations occur through deterministic smart contract logic.

Collateral Status & Cost Breakdown

The interface clearly displays:

• Total collateral supplied
• Outstanding coverage required
• Final coverage percentage
• Borrowing fees (expressed in daily or hourly intervals)
• Option creation fee
• Transaction/network fees
• Estimated maximum profit exposure

This transparency gives sellers a holistic understanding of the economic components associated with their position and enables informed decision-making.

Review & Mint

The final step surfaces a complete summary of:

• Contract structure
• Collateral configuration
• Borrowing details
• Fee components
• Position analytics

Once reviewed and approved, the seller mints an options contract directly on-chain. The OPX protocol does not hold, store, or intermediate user assets; minting occurs from the seller's non-custodial wallet through deterministic smart contracts.

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Protocol Revenue

OPX collects protocol-level fees whenever users open, close, or interact with options positions. These fees do not represent investment returns, dividends, profit-sharing, or confer any form of ownership or entitlement in the protocol. The DAO may direct portions of fees to specific programs or participants according to separately governed mechanisms.

For a comprehensive breakdown of the fee structure, allocation details, and user fee schedules, refer to the Fees page. All applicable fees and their breakdown are transparently displayed within the interface at each stage of position creation and management.