Asset-or-Nothing Options

Asset-or-nothing options are binary derivatives where the payoff is the delivery of the underlying asset itself if the price condition is met at expiration, rather than a cash payment. If the condition is not met, the option expires worthless and no asset is delivered.

This is particularly relevant in crypto, where the physical delivery or transfer of tokens is a core part of the ecosystem. These are used by traders who want to acquire the asset if a certain price target is reached.

For example, a trader might buy an asset-or-nothing call to gain exposure to a token only if it breaks through a resistance level. This provides a way to automate accumulation strategies based on market performance.

The risk is that the trader receives nothing if the price stays below the target, losing the premium paid. These options require the underlying protocol to support token transfers upon contract settlement.

They bridge the gap between financial derivatives and smart contract-based asset management.