Options Position Risk Explainer

WHAT IT DOES

This tool analyzes the risks of an options position and explains them in plain English. It reads the options position ID or wallet address, chain ID, options protocol type (Lyra, Premia, Dopex, Hegic), option type (call/put), strike price, expiry date/time, premium paid/received, position size (number of contracts), underlying asset and price feed, current market price of underlying, implied volatility, delta, gamma, theta, vega, Greeks, margin requirement and collateral posted, liquidation price and threshold, position PnL and unrealized gain/loss, exercise conditions and settlement method, protocol fee structure, and option contract source code and upgradeability. The AI layer translates these on-chain metrics into a clear, actionable risk assessment — describing the option type, strike price, expiration, current Greeks (delta, gamma, theta, vega), margin requirements, and how the position behaves under different market conditions before you open or modify a position. This helps you understand the sensitivity of your options position to price changes, time decay, and volatility.

HOW TO USE

Connect your wallet, select the network, and paste the wallet address or position ID you want to analyze. Select the options protocol, option type, and enter the underlying asset. The tool will fetch the options position data, calculate Greeks and risk metrics, and display the results alongside an AI-generated plain-English risk assessment. No transaction is required — this is a read-only operation. The AI analysis is generated from the exact data the tool reads, ensuring the guidance is grounded in what the chain actually shows.

TECHNICAL MECHANISM

The tool performs view calls to fetch options position data from the protocol contract, including option type, strike price, expiry, position size, and premium. It calculates the Greeks (delta, gamma, theta, vega) by applying options pricing models to the current market data and protocol parameters. The tool determines the position's sensitivity to price changes (delta and gamma), time decay (theta), and implied volatility (vega), and calculates the margin requirement and liquidation threshold based on protocol parameters. It also evaluates the remaining time to expiry and the distance to the strike price. All calculations are performed against the current block state and market data, and the AI prompt is constructed entirely from the actual read results — never from assumptions — ensuring the risk assessment is grounded solely in what the position actually shows. All reads are performed through the connected wallet's provider.

WHAT IT CANNOT SEE

This tool cannot definitively determine if an options position is safe or profitable — it only reads on-chain position data and calculates risk metrics. It cannot predict future price movements or volatility. It cannot account for sudden market shifts. Calculations depend on current market data which may change. It cannot guarantee Greeks or PnL predictions are accurate. It cannot detect off-chain manipulation or intent. Analysis depends on available options protocol data which may be incomplete. It cannot assess the liquidity of the options market. The AI analysis is generated from the data the tool reads and should be treated as informational, not as a guarantee of position safety or profitability.

PLEASE NOTE

EVM chains only. Analysis is AI-generated from data the app reads on-chain — always review what you are actually signing in your wallet before approving it. This tool is read-only and never initiates transactions.