MM Pricing Overview

Fetch indicative market maker prices with fee adjustments and collateral carrying costs for vanilla options and multi-leg structures.

Overview

The MMPricingModule fetches prices from market makers and applies two adjustments:

1. Fee Adjustment - Widens the bid-ask spread to account for exchange fees

2. Collateral Carrying Cost - Adds the opportunity cost of capital for short positions

Importing

import {
  MMPricingModule,
  applyFeeAdjustment,
  calculateCollateralCost,
  parseTicker,
  buildTicker,
  COLLATERAL_APR,
} from '@thetanuts-finance/thetanuts-client';

Module Initialization

import { ThetanutsClient } from '@thetanuts-finance/thetanuts-client';

const client = new ThetanutsClient({ chainId: 8453 });
const mmPricing = client.mmPricing;

---

Fee Adjustment Formula

Market maker prices are adjusted to account for exchange fees:

feeAdjustment = min(0.0003, rawPrice × 0.125)

• Ask price: feeAdjustedAsk = rawAsk + feeAdjustment

• Bid price: feeAdjustedBid = rawBid - feeAdjustment

The adjustment is capped at 0.0003 (0.03% of 1 contract) to prevent excessive spread widening for high-premium options.

import { applyFeeAdjustment } from '@thetanuts-finance/thetanuts-client';

const rawBid = 0.02;
const rawAsk = 0.025;

const adjustedBid = applyFeeAdjustment(rawBid, 'bid');
const adjustedAsk = applyFeeAdjustment(rawAsk, 'ask');

// feeAdjustment = min(0.0003, 0.02 * 0.125) = 0.0003
// adjustedBid = 0.02 - 0.0003 = 0.0197
// adjustedAsk = 0.025 + 0.0003 = 0.0253

---

Collateral Carrying Cost

Short positions require locked collateral with an opportunity cost. The SDK applies per-asset APR rates:

Asset	APR
BTC	1%
ETH	4%
USD	7%

collateralCost = collateralValue × APR × timeToExpiry

Where timeToExpiry is expressed in years.

import { calculateCollateralCost, COLLATERAL_APR } from '@thetanuts-finance/thetanuts-client';

console.log(COLLATERAL_APR);
// { BTC: 0.01, ETH: 0.04, USD: 0.07 }

// PUT at strike 2000, 30 days to expiry
const cost = calculateCollateralCost(2000, 30 / 365, 'USD');
// cost = 2000 × 0.07 × (30/365) = $11.51

---

getAllPricing

Fetches all option prices for an underlying asset, grouped by expiry.

import { ThetanutsClient } from '@thetanuts-finance/thetanuts-client';

const client = new ThetanutsClient({ chainId: 8453 });

const allETH = await client.mmPricing.getAllPricing('ETH');
const allBTC = await client.mmPricing.getAllPricing('BTC');

// Returns: MMAllPricingResponse
// {
//   expirations: [
//     {
//       expiry: 1710547200,
//       expiryLabel: '16MAR24',
//       options: [
//         { strike: 1800, isCall: true, bid: 0.05, ask: 0.055, ... },
//         { strike: 1800, isCall: false, bid: 0.02, ask: 0.025, ... },
//       ]
//     }
//   ]
// }

---

getTickerPricing

Fetches fee-adjusted pricing for a specific option ticker. Returns per-collateral breakdowns.

import { ThetanutsClient } from '@thetanuts-finance/thetanuts-client';

const client = new ThetanutsClient({ chainId: 8453 });

const pricing = await client.mmPricing.getTickerPricing('ETH-16FEB26-1800-P');

console.log(pricing.rawBidPrice);
console.log(pricing.rawAskPrice);
console.log(pricing.feeAdjustedBid);
console.log(pricing.feeAdjustedAsk);

// Per-collateral breakdowns (include collateral carrying cost)
console.log(pricing.byCollateral.USD.mmBidPrice);
console.log(pricing.byCollateral.USD.mmAskPrice);
console.log(pricing.byCollateral.ETH.mmBidPrice);
console.log(pricing.byCollateral.ETH.mmAskPrice);

---

getPricingArray

Convenience wrapper that flattens getAllPricing(...) into a single sorted, non-expired array. Useful when you want to paginate or filter across all expiries at once instead of walking the nested expirations[] shape.

const all = await client.mmPricing.getPricingArray('ETH');

// Already sorted by expiry, then strike. Expired options filtered out.
const calls = all.filter((p) => p.isCall);
const nearTerm = all.filter((p) => p.expiry < someThreshold);

For richer slicing (by date range, strike range, type), pair this with the helpers in Filters & Utilities.

---

MMPricingModule Method Table

Method	Description	Signer Required
getAllPricing(underlying)	All pricing for ETH/BTC	No
getTickerPricing(ticker)	Pricing for specific ticker	No
getPositionPricing(params)	Long/short pricing with collateral cost	No
getSpreadPricing(params)	2-leg spread pricing	No
getButterflyPricing(params)	3-leg butterfly pricing	No
getCondorPricing(params)	4-leg condor pricing	No
filterExpired(pricing[])	Filter out expired options	No
sortByExpiryAndStrike(pricing[])	Sort by expiry, then strike	No
getUniqueExpiries(pricing[])	Get unique expiry dates	No
filterByType(pricing[], isCall)	Filter calls or puts	No
filterByExpiry(pricing[], date)	Filter by expiry date	No
filterByStrikeRange(pricing[], min, max)	Filter by strike range	No
getPricingArray(underlying)	Sorted, non-expired pricing array	No

---

Price Components Summary

Component	Description	Applies To
Raw Price	Market maker's base price	All
Fee Adjustment	Exchange fee spread widening	All
Collateral Cost	Cost of capital for short positions	Short only

Final Ask (buying/going long):

finalAsk = rawAsk + feeAdjustment

Final Bid (selling/going short):

finalBid = rawBid - feeAdjustment - collateralCost

---

See Also

• Position & Spread Pricing - getPositionPricing and getSpreadPricing with collateral cost details

• Collateral Cost Reference - APR rates and the carrying cost formula

• Filters & Utilities - Filter and sort helpers for pricing arrays