> For the complete documentation index, see [llms.txt](https://docs.nondollar.life/autonomint/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nondollar.life/autonomint/options/selling-options-via-dcds.md).

# Selling Options via dCDS

The dCDS pool is the sell side of Nondollar options. Deposit assets, and your deposit underwrites the options that buyers purchase. In return, you earn a proportional share of **every premium paid by every buyer**, continuously, from the moment you deposit.

### What you can deposit

dCDS accepts 2 collaterals as of now:

* **ETH** — your deposit underwrites *call* options on that asset. This is on-chain covered-call selling if you are selling calls on ETH: you keep exposure to the asset you already hold, and it earns premium yield on top. You end up with exposure to two assets at once — your ETH position plus a growing USDC income stream.
* **USDC** — your deposit underwrites *put* options and earns premiums the same way, with no crypto price exposure on the deposit itself.

### How your yield accrues

Premiums are paid by buyers in USDC and split across all depositors in proportion to deposit value. The split is tracked by an on-chain index, which means:

* You earn from every option sold while you're deposited — dozens of buyers, one pooled income stream.
* You never earn from premiums paid *before* you deposited, and later depositors never dilute what you've already earned. Your entry is snapshotted; the math is exact.
* Premiums are yours whether options expire worthless or in-the-money. They're income, not a refundable deposit.

### What happens when buyers win

When a call expires in-the-money, the buyer's payout — capped at 5% of the strike — is deducted from the pool, in the pool's own asset. If you deposited ETH, in-the-money calls reduce the pool's ETH slightly; your share of the pool (your "pool shares") never changes, but each share is backed by a little less ETH. Out-of-the-money expiries — the majority — deduct nothing.

This is the covered-call trade-off in its classic form: you're selling away part of the asset's upside in exchange for steady income. If ETH stays flat or falls, you keep everything plus all premiums. If ETH rallies hard, you give up a capped slice of the rally — and keep the premiums.

### Your dashboard: know your exposure

Because the payout cap fixes the maximum any option can pay, the pool can safely underwrite more option notional than raw deposits — that's what makes the yields meaningful. It also means your deposit is working hard, and you should always know exactly how hard. Your position screen shows, live:

* **Contracts your deposit is underwriting** — e.g. "your 1 ETH currently backs 12 contracts."
* **Pool utilization** — how much of the pool's capacity is committed to live options.
* **Worst case this expiry** — what your deposit becomes if *every* live contract pays out at its cap. This is the number to check before you deposit, not after.

The worst case is bounded by design so total possible payouts can never exceed pool capacity, enforced on-chain at the moment each option is sold but "bounded" is not "small." In a sharp rally, an ETH depositor can give up a meaningful fraction of deposit value to capped payouts while earning premiums on all of it. Read Risks before depositing.

### Deposits, withdrawals and lock-ins

Withdrawals settle at expiry boundaries: while options your deposit backs are live, your funds are committed; once the current expiry settles, you can withdraw. With short-dated options this means liquidity windows of days, not months. On withdrawal you receive your pool share of the deposited asset **plus** all accrued USDC premiums in one transaction.

### Quick example

You deposit 1 ETH (at $3,000) alongside other depositors totalling a 10 ETH pool. You own 10% of the pool.

* This week the pool underwrites 120 call contracts at a $3,100 strike; buyers pay $600 in premiums. Your share: **$60**, credited to your index immediately.
* ETH settles at $3,150 — in the money by $50, below the cap. Payout = 120 × $50 = $6,000, deducted from the pool as \~1.9 ETH. Your share of the pool ETH drops by \~0.19 ETH (≈ $600 at settlement).
* Net for the week: −$600 in ETH given up, +$60 premium — a losing week on a rally, exactly like any covered call.
* ETH settles at $3,080 instead — out of the money. You give up nothing and keep the $60. Most weeks look like this one.

Over time your return is the sum of many small premium wins minus occasional capped give-backs on rallies. The strategy outperforms holding in flat, choppy and falling markets, and underperforms holding during strong sustained rallies — that is the trade, stated plainly.