Hedge an existing position
Compare a derivative with the asset it is intended to hedge. Match the position size and time horizon, and consider differences in price behavior.
Derivatives & structured products / STRATEGIC PRIORITY
More ways to manage exposure.
Futures, perpetuals and options bring different tools to a trading decision. Our priority is to connect each instrument with a clear financial purpose.
Futures · Options · Structured products
Professional market participants · Funds · Asset managers · Eligible institutional clients
EXPLORE THE PRODUCT SCOPE
Derivatives & structured products.
Futures, perpetuals, options and structured exposures form our principal expansion focus, connecting trading strategies with hedging and risk management.
Futures & perpetual contractsCompare fixed-maturity contracts with perpetual exposure.
Futures and perpetual contracts for hedging or taking digital asset price exposure. Fixed-maturity futures require an expiry and settlement plan; perpetual-style products require close attention to funding and any rollover rules. Both need collateral, position limits and a plan for margin calls or liquidation.
View in the complete directoryDigital asset optionsShape exposure with calls, puts and defined contract terms.
Calls give buyers a right to buy and puts a right to sell at a strike, or to receive cash settlement under the contract. Buyers pay a premium; writers take on the corresponding obligations. Exercise style, expiry, volatility and position size determine potential gains and losses across individual options and combined strategies.
View in the complete directoryStructured productsEvaluate tailored payoffs alongside their conditions and risks.
Digital asset-linked structures spanning yield enhancement, range-based returns, dual-currency settlement and conditional principal protection. Payoffs may cap gains or settle in an asset that has fallen in value. Any protection depends on the contract, holding to the required maturity and issuer creditworthiness; early exits may realize losses.
View in the complete directoryPOTENTIAL APPLICATIONS
Start with the exposure. Then choose the instrument.
Derivatives are a strategic priority for Avermont. Our direction includes futures, perpetuals, options and structured products for hedging and strategy trading. Contract terms, costs and collateral determine how each instrument works.
Express a volatility view
Use calls, puts or combinations to examine a view on price or volatility. Compare the premium, expiry and possible gains and losses.
Compare payoff structures
Review how contract terms change the return at different asset prices, including barriers, early exits and potential principal loss.
THE ROLE OF DERIVATIVES
Practical tools for managing exposure.
Three potential advantages, evaluated together with their costs and limits.
Hedge price exposure
An asset holder can use a short futures position to help offset a fall in the holding’s value without immediately selling the asset.
Cost & trade-off Basis differences and hedge sizing affect the offset. Futures losses can reduce gains on the holding, and margin calls require liquidity.
Shape downside with options
A purchased put can help protect a matching holding below a chosen strike at expiry, while preserving participation in the asset’s upside.
Cost & trade-off Protection costs a premium. The option may expire worthless; strike, expiry, position size and settlement terms determine the outcome.
Adjust exposure and capital use
Futures allow market exposure with an initial margin deposit instead of paying the full contract value upfront.
Cost & trade-off Leverage increases risk. Adverse moves can trigger additional margin or forced closure, and losses can exceed the initial deposit; fees also apply.
Educational references: CFTC: futures and hedging · CFTC: options terminology · CFTC: digital asset derivatives risks.
START WITH THE REQUIREMENTS
A clear brief makes a useful conversation.
These four considerations help define the scope, responsibilities and practical requirements for a proposal.
- 01
Identify the exposure
Underlying assets, current positions, desired hedge and acceptable loss scenarios.
- 02
Compare instruments
Futures expiry, settlement and rolling a position; perpetual funding without a scheduled expiry; option premiums, strikes and exercise style.
- 03
Stress the structure
Price gaps, volatility shifts, funding changes and collateral demands under adverse conditions.
- 04
Define the lifecycle
Monitoring, margin calls, exercise, expiry, settlement and any early-exit conditions.
Funding, basis and margin
A derivative may not track a spot exposure exactly. Funding costs and collateral requirements can change during the position’s life.
Options and structured terms
Option buyers can lose their premium; writers face obligations that can create substantial losses. Structured payoffs may depend on barriers or settlement in a different asset; quoted yields do not describe total risk.
Protection and market access
Any principal-protection feature depends on the contract, required holding period and issuer creditworthiness. Product access and leverage depend on applicable permissions and client eligibility.
Scope & availability
These areas describe Avermont’s development scope and are not currently offered to clients. Availability depends on applicable permissions, jurisdiction, eligibility, counterparties and final terms. Read the legal information.
PARTNERSHIPS & INQUIRIES
Discuss a hedge or derivatives partnership.
Describe the asset, existing exposure, time horizon and proposed use. Product, liquidity and technology partners can also introduce their capabilities.