FAQ

Common questions about SYNTH, Greeks, pricing, and trading

What is SYNTH?

SYNTH is a professional options pricing and edge detection tool for Hyperliquid perpetual trading. It combines Black-Scholes Greeks calculations, fair value detection, and cascade-aware risk analysis.

Category: Getting Started

Is this a live trading bot?

No, SYNTH is an analytics and decision support tool. You input parameters, view calculations, and make trading decisions. Actual trading happens on Hyperliquid or other exchanges.

Category: Getting Started

Do I need to connect a wallet?

No. SYNTH works entirely in-browser with public market data. No authentication or wallet connection required.

Category: Getting Started

Why are cascade-adjusted Greeks different?

In perp markets, liquidation cascades create non-normal distributions. Put values increase dramatically near liquidation levels because liquidations create buyback pressure. Cascade-adjusted Greeks account for this.

Category: Greeks & Pricing

What does Delta mean?

Delta = sensitivity to price moves. A delta of 0.50 means the option price changes $0.50 for every $1 move in the underlying. Calls have positive delta, puts have negative delta.

Category: Greeks & Pricing

Is Gamma important?

Very. Gamma measures how fast delta changes. High gamma = risky but profitable if you're right. Low gamma = stable. Gamma is highest at-the-money and increases as expiration approaches.

Category: Greeks & Pricing

What's the difference between IV and realized vol?

IV (implied vol) = market's expectation of future volatility. RV (realized vol) = actual volatility that happened. If IV > RV, sell premium. If IV < RV, buy premium.

Category: Greeks & Pricing

How do I find edges with the Fair Value tool?

Set the strike, expiry, and IV. Enter the market price you see. If mispricing % is high (>10%), that's an edge. Positive % = overpriced (sell), Negative % = underpriced (buy).

Category: Fair Value & Edges

Can I trust the fair value calculation?

Fair value is based on Black-Scholes, which assumes log-normal distribution and constant volatility. Markets are not perfectly log-normal, so use it as a reference, not gospel.

Category: Fair Value & Edges

What confidence level should I trade?

We recommend >70% confidence for real trades. Below 60% is noise. Between 60-70%, use smaller position sizes.

Category: Fair Value & Edges

What strategy should I use for bullish outlook?

Bullish: Bull call spread (defined risk, limited profit) or Bull put spread (collect premium if confident). Bull call spread is safer.

Category: Strategies

What about neutral outlook?

Neutral: Iron condor (wide range, maximum theta), iron butterfly (tight range, high probability), or calendar spread (time decay).

Category: Strategies

Why use spreads instead of just buying/selling?

Spreads reduce cost (buy call + sell higher call = less capital). They also define your max loss upfront, making risk management easier.

Category: Strategies

What's the 2% rule?

Never risk more than 2% of your account on a single trade. This prevents account blowups. If account = $10k, max loss per trade = $200.

Category: Risk Management

How much margin should I use?

Keep margin usage below 50% at entry. This leaves room for adverse moves without liquidation. Never use 100% margin on directional plays.

Category: Risk Management

What's Kelly Criterion?

Kelly = (Win% × Edge% - Loss% × (1 - Win%)) / Odds. Use it ONLY if you have >55% win rate. Otherwise, use fixed 2% rule.

Category: Risk Management

Where does your price data come from?

CoinGecko (crypto), AlphaVantage (stocks). These are real-time public APIs. Greeks calculations are mathematical, not historical.

Category: Data & Accuracy

What's real vs demo data?

Real: Prices from CoinGecko/AlphaVantage. Demo: Greeks, fair value, edges use realistic models but should be validated against actual markets.

Category: Data & Accuracy

Will SYNTH have live Hyperliquid data?

Yes, after HIP-3 integration. Then we'll have live perp mark prices, liquidation levels, and funding rates.

Category: Data & Accuracy

Why are my Greeks different from my broker?

Different brokers use slightly different vol models and interest rates. Small differences are normal. Large differences = check your inputs.

Category: Troubleshooting

The vol term structure looks weird?

That's actually common! Steep backwardation = high near-term vol. Flat curve = no volatility expectation. Use it to pick calendar spread strikes.

Category: Troubleshooting

Can I save my calculations?

Not yet. Currently SYNTH is stateless. You can screenshot or export data manually. Saved portfolios coming post-hackathon.

Category: Troubleshooting

Still have questions?

Check the How to Use guide for step-by-step tutorials.

Open an Issue on GitHub →