> ## Documentation Index
> Fetch the complete documentation index at: https://docs.garden.finance/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](/home/fundamentals/core-concepts/atomic-swaps) 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](/home/fundamentals/core-concepts/atomic-swaps#scenarios-and-safeguards).

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

## Solver safeguards

<CardGroup cols={1}>
  <Card title="Trade success insurance" icon="shield">
    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>

  <Card title="Accountability mechanism" icon="users">
    This penalty directly discourages solver misuse and ensures stakers will keep solvers accountable as they can always switch their vote to another solver.
  </Card>

  <Card title="Performance scoring" icon="chart-line">
    Settlement speed is already factored into the solver score [formula](/home/fundamentals/core-concepts/auctions), reducing the ability of unreliable solvers to win future intents.
  </Card>
</CardGroup>

## 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.
</Warning>

<Note>
  Stakers earn yield from the protocol and govern its operations, making them responsible for ensuring users interact with the UI effectively.
</Note>