> ## Documentation Index
> Fetch the complete documentation index at: https://docs.garden.finance/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Free Option Protection

> Garden protects against the free option problems via its incentive structure

The **free option problem** in [atomic swaps](https://docs.garden.finance/docs/home/fundamentals/core-concepts/atomic-swaps.md) arises when one party exploits market conditions by deciding to complete or abort a swap based on price movements, leaving the counterparty at a disadvantage. These cases are covered in [scenarios and safeguards](https://docs.garden.finance/docs/home/fundamentals/core-concepts/atomic-swaps.md#scenarios-and-safeguards).

Garden addresses this challenge with built-in mechanisms that ensure fairness and accountability for the participants.

## Solver safeguards

> [card] Trade success insurance
>
> Solver and its respective stakers are slashed if the solver fails to initiate a deposit on their side after the user's deposit. The slashed amount is awarded to the user.

> [card] Accountability mechanism
>
> This penalty directly discourages solver misuse and ensures stakers will keep solvers accountable as they can always switch their vote to another solver.

> [card] Performance scoring
>
> Settlement speed is already factored into the solver score [formula](https://docs.garden.finance/docs/home/fundamentals/core-concepts/auctions.md), reducing the ability of unreliable solvers to win future intents.

## User safeguards

> [!WARNING]
>
> If a solver fails to initiate an asset after a being matched with the user, a portion of the stakers' and solvers' SEED stake (proportional to the trade size) is slashed and awarded to the user.

> [!NOTE]
>
> Stakers earn yield from the protocol and govern its operations, making them responsible for ensuring users interact with the UI effectively.


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