Derive

Derive receives a B- risk grade (35/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — full-featured options exchange but your positions are hostage to a single chain sequencer that could fail when you need it most An options and perpetual futures exchange running on its own dedicated blockchain (Derive Chain). It holds $100M in deposits and raised $6.3M. Its C+ grade reflects the danger of running a derivatives exchange on a single-operator chain: if the chain goes down during a crash, all your positions are trapped.

The key risks identified for Derive are: (1) Derive runs on its own chain with a single block sequencer. If that sequencer crashes during a volatile market, you cannot close positions, add margin, or prevent liquidation (2) Portfolio margin lets you combine options, futures, and spot in one account. If BTC and ETH crash together, your entire account liquidates across all positions at once (3) Co-founders proposed increasing the token supply by 50%, which would dilute existing holders by a third. Governance insiders can change the rules in their favor

Derive scores 35/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 8/20, Oracle Surface: 5/10, Documentation Gaps: 2/10, Track Record: 3/15, Scale Exposure: 5/10, Regulatory Risk: 3/10, Vitality Risk: 3/10. The highest risk area is Oracle Surface at 5/10.

Among 53 rated Derivatives protocols on Hindenrank, Derive ranks #17 by safety (lowest risk score = safest). Its 35/100 risk score and B- grade place it among the safer Derivatives protocols.

Derive scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.