Position & Spread Pricing

Fetch position-level pricing (with collateral cost) for single options and multi-leg spreads, and integrate rfqCalculations, mmPricing, and optionFactory into a complete RFQ workflow.

getPositionPricing

Returns pricing for a specific option position including collateral cost. Use this when you know the direction (long/short), contract count, and collateral token.

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

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

const position = await client.mmPricing.getPositionPricing({
  ticker: 'ETH-16FEB26-1800-P',
  isLong: true,         // true = BUY, false = SELL
  numContracts: 10,
  collateralToken: 'USDC',
});

console.log(position.basePremium);     // Fee-adjusted price before carrying cost
console.log(position.collateralCost);  // Carrying cost added for short positions
console.log(position.totalPrice);      // Final all-in price including collateral cost

For short positions, collateralCost is calculated as:

collateralCost = collateralValue × APR × timeToExpiry

where APR is 1% for BTC, 4% for ETH, 7% for USD collateral.

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getSpreadPricing

Returns net spread pricing for a two-leg structure. Multi-leg structures use a spread-level collateral cost based on the spread width (max loss), not the sum of per-leg costs.

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

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

const spread = await client.mmPricing.getSpreadPricing({
  underlying: 'ETH',
  strikes: [220000000000n, 200000000000n],  // 8 decimals: $2200, $2000
  expiry: 1774627200,
  isCall: false,  // Put spread
});

// Width and collateral cost
console.log('Width (USD):', spread.widthUsd);                // e.g. 200
console.log('Spread CC (USD):', spread.spreadCollateralCost); // e.g. ~$0.42
console.log('Net spread price (ETH):', spread.netSpreadPrice);

// Net MM prices already include the spread-level collateral cost
const ethPrice = spread.nearLeg.underlyingPrice;
console.log('Ask (USD):', (spread.netMmAskPrice * ethPrice).toFixed(2));
console.log('Bid (USD):', (spread.netMmBidPrice * ethPrice).toFixed(2));

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getButterflyPricing

Returns net pricing for a three-leg butterfly. Strikes are passed in the order [lower, middle, upper] (8-decimal price units). Width-based collateral cost mirrors the spread case.

const fly = await client.mmPricing.getButterflyPricing({
  underlying: 'ETH',
  strikes: [180000000000n, 200000000000n, 220000000000n],  // $1800, $2000, $2200
  expiry: 1774627200,
  isCall: true,
});

console.log('Width (USD):', fly.widthUsd);
console.log('Net ask (ETH):', fly.netMmAskPrice);
console.log('Net bid (ETH):', fly.netMmBidPrice);

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getCondorPricing

Returns net pricing for a four-leg condor ([strike1, strike2, strike3, strike4], ascending). Same collateral-cost model as butterfly — based on the wider wing.

const condor = await client.mmPricing.getCondorPricing({
  underlying: 'ETH',
  strikes: [
    160000000000n,  // $1600
    180000000000n,  // $1800
    220000000000n,  // $2200
    240000000000n,  // $2400
  ],
  expiry: 1774627200,
  isCall: false,
});

console.log('Net ask (ETH):', condor.netMmAskPrice);
console.log('Net bid (ETH):', condor.netMmBidPrice);

For iron condors and richer 4-strike combinations, validate parameters with validateCondor / validateIronCondor from the rfqCalculations helpers before submitting.

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How rfqCalculations, mmPricing, and optionFactory Fit Together

The three modules divide responsibilities cleanly:

Module	Purpose
rfqCalculations	Position sizing: numContracts, collateral, reservePrice
mmPricing	Price discovery: fee-adjusted bid/ask, collateral carrying cost
optionFactory	RFQ submission and settlement lifecycle

Workflow

User Input (amount, product, strikes, direction)
       │
       ▼
1. Get MM pricing        → mmPricing.getTickerPricing() / getSpreadPricing()
       │
       ▼
2. Calculate contracts   → calculateNumContracts({ tradeAmount, product, strikes, isBuy })
       │
       ▼
3. Calculate reserve     → calculateReservePrice(numContracts, mmPrice, spot, product)
       │
       ▼
4. Submit RFQ            → optionFactory.requestForQuotation(request)

SELL Order Example

When selling, use feeAdjustedBid and supply collateral.

import {
  ThetanutsClient,
  calculateNumContracts,
  calculateCollateralRequired,
  calculateReservePrice,
} from '@thetanuts-finance/thetanuts-client';

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

// User sells PUT with 4000 USDC collateral
const tradeAmount = 4000;
const strike = 2000;
const spot = 2500;

const pricing = await client.mmPricing.getTickerPricing('ETH-16MAR24-2000-P');

const numContracts = calculateNumContracts({
  tradeAmount,
  product: 'PUT',
  strikes: [strike],
  isBuy: false,
});
// Result: 2 contracts (4000 / 2000)

const collateral = calculateCollateralRequired(numContracts, 'PUT', [strike]);
// Result: 4000 USDC

const reservePrice = calculateReservePrice(
  numContracts,
  pricing.feeAdjustedBid,  // Use bid for selling
  spot,
  'PUT'
);
// Result: minimum premium to receive (in USDC)

console.log(`Selling ${numContracts} contracts`);
console.log(`Collateral required: ${collateral} USDC`);
console.log(`Reserve price: ${reservePrice} USDC`);

BUY Order Example

When buying, use feeAdjustedAsk and specify a premium budget.

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

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

const budget = 200;  // USDC to spend on premium
const strike = 2000;
const spot = 2000;

const pricing = await client.mmPricing.getTickerPricing('ETH-16MAR24-2000-P');

const numContracts = calculateNumContracts({
  tradeAmount: budget,
  product: 'PUT',
  strikes: [strike],
  isBuy: true,
  mmPrice: pricing.feeAdjustedAsk,  // Use ask for buying
  spot,
});
// Result: 2 contracts (200 / 100 premium per contract)

const reservePrice = calculateReservePrice(
  numContracts,
  pricing.feeAdjustedAsk,
  spot,
  'PUT'
);
// Result: maximum premium to pay (in USDC)

console.log(`Buying ${numContracts} contracts`);
console.log(`Reserve price: ${reservePrice} USDC`);

BUY vs SELL Summary

	SELL Order	BUY Order
Input amount	Collateral to post	Premium budget
MM price to use	feeAdjustedBid	feeAdjustedAsk
numContracts formula	tradeAmount / maxLoss	tradeAmount / premiumPerContract
reservePrice meaning	Minimum premium to receive	Maximum premium to pay
Collateral required	Yes — from calculateCollateralRequired	No (buyer)

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See Also

• MM Pricing Overview - getAllPricing, getTickerPricing, fee adjustment formula

• Collateral Cost Reference - APR rates and carrying cost formula

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