Options premiums

I have an idea for Value Vaults revenue instead of useless NFTs. WBTC and ETH vault stakers can now earn premiums for providing liquidity to https://www.hegic.co/. Providing liquidity earns WBTC and ETH from option buyers/sellers and also yields the hegic token currently at 300% APY.

The Hegic token earned by the LPs can then be staked on the platform to receive more ETH and WBTC profits. The more lots we hold, the more fees we get. These profits can go to vault stakers and value gov vaults.


Sounds like an interesting vault strategy. I am still reading up on the Hegic site, but how would you describe the risks of providing liquidity there? can you lose your funds?