Security

Hypervolic is fully secured. Every position's worst case is held in cash from the moment it opens, so the exchange extends no credit, makes no margin calls and liquidates nobody. What an account holds depends on its strikes and quantities, never on a price, so a move in the underlying changes nothing it must hold.

An account's cash is in one of three places:

Positions offset each other within a book: all of an account's calls and puts on one underlying at one expiry. Nothing offsets across books, so a calendar spread is secured in full on its short leg, and two underlyings never net.

A book's requirement is its greatest possible loss at expiry. Because a book's value at expiry is piecewise linear in the settlement price, with kinks only at the listed strikes, that loss is found by valuing the book at every strike and at 0 and 1, and taking the worst:

1234value(k) = Σ calls  Q(K) × max(k − K, 0)
         + Σ puts   Q(K) × max(K − k, 0)        (Q signed: long > 0, short < 0)

requirement = M × max(0, −min value(k))   over k ∈ {0, 0.05, …, 0.95, 1}

The premium you received is not counted against it.

One contract per leg, M = 100:

A single short call at strike K requires M × (1 − K); a single short put requires M × K.

The requirement already counts what your resting orders could do. For each contract, the exchange secures the book as though every resting sell had filled: a sell against a position you already hold costs nothing more, and a sell beyond it is secured as the short it would open. Long 3 contracts with 5 resting sells is secured as short 2.

A resting buy holds its premium at its limit price plus its fee as collateral.

An order is admitted only if free cash covers the increase in the requirement. Once admitted, nothing raises it: a fill, a cancel or an expiry only ever lowers or keeps what an account holds.