# FAQs
Welcome to Hypersurface **FAQs**. Below you’ll find answers to common questions about yield, options, settlement, and platform mechanics.
***
### 📌 General
#### Q:What is Hypersurface?
A: Hypersurface is a structured yield platform where users earn upfront premium by selling covered calls or secured puts with simple on-chain UX.
**Q: What is the settlement/delivery time?**\
\
**A:** Settlement starts after the option expires at **08:00 UTC** on its listed expiry date. Expiry is not limited to Friday.
Please note:
* After expiry at 08:00 UTC, positions may take up to **\~2 hours** to fully settle before they are reflected in the protocol and available for withdrawal.
* This extended settlement period may occur during times of high volume, as the protocol requires additional processing time to accurately handle all exercised and expiring positions.
* Additionally, **in-the-money (ITM) options may be exercised up to \~24 hours before expiry** if it is optimal for the protocol.
#### Q: Can settlement happen before expiry?
A: Yes, but this applies only if you close your position early. Please check [**Early Position Closure**](/overview/early-position-closures.md) for more details.
***
### 📈 Covered Calls & Puts
#### Q: What is a covered call?
A: A covered call lets you earn upfront premium by committing to sell your asset at a chosen strike price while keeping exposure until expiry.
#### Q: How does a covered call work on Hypersurface?
A: You select a strike and expiry, receive the premium instantly, and at expiry either sell at the strike or keep your tokens plus the premium.
#### Q: What happens if my call option is exercised?
A: If the option finishes in-the-money, your asset is automatically sold at your strike price. You receive the agreed amount in USDT, plus the original premium.
#### Q: What happens if the strike is not hit and the price drops?
A: You keep the upfront premium and continue holding the asset, helping offset part of the downside.
#### Q: When does exercise happen?
A: Exercise may occur during the final 24-hour window if the position is in the money.
Users should not assume exercise happens only at the final moment of expiry.
#### Q: Are secured puts supported?
A: Yes. Cash-secured puts are live for assets like ZORA, AVNT, HYPE, and more.
***
### 💰 Yield, Premiums & APR
#### Q: When do I get my yield?
A: Yield (the premium) is paid upfront when the position is opened, not at expiry.
#### Q: Is the premium fixed?
A: No. Premiums vary based on asset, strike price, expiry, and market volatility.
#### Q: Why are APRs so high?
A: APR reflects asset volatility and strike selection. Higher volatility produces higher premiums.
#### Q: Where does APR come from?
A: APR comes from market-driven option pricing based on volatility and demand.
#### Q: Is Hypersurface a yield engine?
A: Hypersurface is a structured yield platform that generates market-driven premiums from selling options.
***
### ⚠️ Risk & Lockups
#### Q: Can I withdraw before expiry?
A: Yes, please refer to [**Early Position Closures**](/overview/early-position-closures.md) for more information.
#### Q: Is my principal at risk?
A: The main risk is ending up buying or selling the asset at the price you selected.
For puts, this means you may buy an asset that continues to decline in price after execution until expiry.
There are no liquidation risks because positions are fully collateralized.
#### Q: Do I need to understand options?
A: No. If you can pick a sell price and asset, the rest is handled with simple UX.
***
### 🏦 Liquidity, Hedging & Counterparties
#### Q: Who is the counterparty on trades?
A: The counterparty is an on-chain liquidity pool that delta-hedges using perpetuals and spot trading.
#### Q: Who provides the liquidity?
A: Liquidity is currently provided by the protocol.
#### Q: How does Hypersurface hedge risk?
A: Risk is hedged using perpetual futures, spot trading, and on-chain limit orders.
#### Q: Are liquidity pools open to everyone?
A: No.
***
### 🔁 Auctions & Rebates
#### Q: What is an auction on Hypersurface?
A: It is how Hypersurface sells option inventory back to the market. The price opens high and ticks down over a short window, and anyone with a wallet can take it. See [Auctions](/overview/auctions.md).
#### Q: Can anyone take an auction?
A: Yes — anyone with a wallet, with no sign-up or whitelist.
#### Q: What is the Rebate Ledger?
A: When an option you sold is auctioned for more than the protocol's price, the extra is paid back to you as a rebate. The Rebate Ledger tracks those rebates and lets you claim them. See [Rebate Ledger](/overview/rebate-ledger.md).
#### Q: Do I earn a rebate if my position is auctioned?
A: If you sold an option to Hypersurface and still hold the position, you earn a share of the proceeds whenever that option is auctioned, proportional to your position size. Rebates are paid in USDT0.
#### Q: How do I claim my rebate?
A: Go to [app.hypersurface.io/rebates](https://app.hypersurface.io/rebates), where your rebates are shown by option, and click claim. No token approval is needed, and rebates build up until you claim them.
#### Q: Do I lose my rebate if I close or settle my position?
A: No. Rebates you have already earned stay yours to claim, even after you close, exercise, or settle the position.
***
### 🎯 Strikes, Probabilities & Limits
#### Q: How are strike prices determined?
A: Strikes are generated automatically as percentages relative to the current market price.
#### Q: How is sell probability calculated?
A: Sell probability is implied from option premium using the Black–Scholes pricing model.
#### Q: Is sell probability guaranteed?
A: No. It’s an estimate meant to help users compare market pricing with expectations.
***
### 🧾 Settlement & Portfolio
#### Q: Do I receive yield only after expiry?
A: No. Premium is paid upfront when the position is opened.
#### Q: Why does the premium not show separately for puts?
A: For puts, the premium is netted against the required USDT collateral.
#### Q: What happens after my position expires?
A: You must settle to receive either your asset back or the sale proceeds.
#### Q: I can’t find my collateral after expiry. What should I do?
A: Go to Portfolio → Expired → Settle All.
***
### 🪙 Assets & Wallets
#### Q: What assets are supported?
A: BTC, ETH, HYPE, and more
#### Q: Do I need wHYPE instead of HYPE?
A: Yes. Hypersurface uses wrapped assets on HyperEVM like uBTC, uETH, and uHYPE.
#### Q: Can I wrap HYPE in the app?
A: Yes. Wrapping is available directly inside Hypersurface.
#### Q: Can I use an API wallet?
A: No. Only main Hyperliquid accounts are supported.
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