# Impermanent Gain vs. Vanilla Options

Call & Put options ("vanilla options") have been a staple across capital markets offering participants a robust way to long/short the underlying asset, its volatility, and to hedge their portfolios.

Impermanent Gain is very close to an Option in the principle â€“Â it has been created to hedge or cover the most known DeFi Risk: **Impermanent Loss**. In a sense, Options and Impermanent Gain share the same goal.

Impermanent Gain Options are a new kind of derivative specifically tailor made for DeFi unique risks. Itâ€™s not just a trading strategy, but a primitive for the DeFi Ecosystem.

Impermanent Gain options have many of the benefits you can get from Call & Put options with some unique advantages for speculators and hedgers alike.

The first significant difference to understand is the payoff...

### Call & Put options have a linear payoff:

### Impermanent Gain options have a convex payoff:

This is due to the fact that Impermanent Gain is a portfolio of optionsâ€”the **key benefits are**:

**More aggressive payoff for speculators when your options expire in-the-money (ITM)****The most accurate way to hedge a DEX LP position**

A second order effect of Impermanent Gain's unique properties is that there is no need to manually choose a "strike" priceâ€”creating a **much simpler trading UX!**

However, at the same time, it slightly limits a speculator's flexibility to "build" their ideal position.

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