Why Isn't SIP-4 Considered a Full Options Protocol ?
One of the first concepts that stands out when reading SIP-4 is the term American-style execution right. At first glance, this can create the impression that SIP-4 is a traditional options protocol. The documentation, however, defines a much narrower scope for V1.
In its V1 design, SIP-4 is limited to Block TP and Block SL use cases. Its objective is to introduce a new contractual structure that allows existing perpetual positions to be managed through execution rights under predefined conditions.
As a result, the V1 design does not provide the broad range of products typically found in traditional options markets. Instead of supporting general-purpose options contracts, the documentation defines a structure focused on specific execution-right use cases.
Reservation Fee, Guarantee Deposit, the expiry period, and the execution right are the core components of this design. While the terminology borrows concepts from options markets, the scope defined for V1 remains limited to Block TP and Block SL.
For that reason, it is important to distinguish between the terminology used in SIP-4 and the actual scope of its V1 implementation. The documentation describes a structure built around specific execution-right use cases and does not define the broader set of functionality typically associated with a full options protocol.
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