v1.0.0 to v1.0.0

---

name: deribit-crypto-options-api

description: Quantitative Deribit crypto options API engine for JSON-RPC 2.0 formatting,

inverse option premium conversions (BTC/ETH to USD), portfolio Greeks aggregation,

and margin safety audits.

domain: Decentralized Finance (DeFi) & Crypto Derivatives

subdomain: Crypto Options Trading

tags:

- deribit

- crypto-options

- json-rpc-2.0

- inverse-options

- btc-options

- eth-options

- option-greeks

- mark-iv

brokers_frameworks:

- Deribit API v2

- JSON-RPC 2.0

- Python Dataclasses

author: algo-trading-skills-contributors

license: Apache-2.0

---

## When to Use

Use this skill in crypto quantitative trading systems, options market making bots, and delta-hedging algorithms trading on Deribit ($80\%+$ global crypto options market share). Deribit options utilize **Inverse Contract Specs** where option premiums and margin requirements are denominated in the underlying cryptocurrency (`BTC` or `ETH`), rather than USD. This module formats JSON-RPC 2.0 requests, normalizes inverse option prices to USD, and aggregates portfolio Greeks ($\Delta$, $\Gamma$, Vega).

## Prerequisites

- Deribit API v2 credentials (`client_id`, `client_secret`) or Testnet endpoint.

- Instrument symbol string (e.g. `BTC-28MAR26-60000-C`).

- Underlying index price (e.g. BTC/USD index = \$65,000).

## Workflow

1. **JSON-RPC 2.0 Payload Formatting**:

- Construct JSON-RPC request (`jsonrpc: "2.0"`, `method: "public/ticker"`, `params: {instrument_name}`).

2. **Inverse Premium to USD Conversion**:

- $P_{\text{USD}} = P_{\text{coin}} \times S_{\text{index\_usd}}$.

3. **Portfolio Greeks Aggregation**:

- Delta ($Coin$) = $\text{Qty} \times \text{Delta}_{\text{option}}$.

- Delta ($USD$) = $\Delta(Coin) \times S_{\text{index\_usd}}$.

4. **Order Dispatch & Margin Audit**:

- Verify initial margin ($IM_{\text{btc}} \le \text{Available Balance}$) before dispatching `private/buy` or `private/sell`.

5. **Audit Report Generation**: Output structured `DeribitOptionsOrderReport`.

> Full procedure: see `references/workflows.md`.

> Standards reference: see `references/standards.md`.

> Printable pre-flight checklist: see `assets/checklist.md`.

## Common Pitfalls

- **Conflating Premium Quotes in USD**: Treating Deribit premium quotes as USD instead of BTC/ETH, mis-pricing option premiums by a factor of \$65,000.

- **Ignoring Inverse Delta Drift**: Failing to account for coin price movements shifting USD-denominated delta exposure in inverse option contracts.

- **WebSocket Reconnection Drops**: Failing to handle WebSocket session ping/pong heartbeats during fast market volatility.

## Verification

- Instantiate `DeribitCryptoOptionsApiEngine`. Query ticker for `BTC-28MAR26-60000-C` ($P_{\text{btc}} = 0.05$ BTC, Index Price = \$60,000). Verify engine converts premium to \$3,000 USD. Calculate delta exposure for 10 call options ($\delta = 0.60$). Verify coin delta = 6.0 BTC, USD delta = \$360,000.

- Run `python scripts/test_deribit_crypto_options_api.py`.

## Related Skills

- `options-implied-volatility-surface-construction`

- `crypto-exchange-api-integration`

---