Derive

Derive (formerly Lyra) is a decentralized derivatives venue offering European-style options and cash-settled perpetual swaps, and one of the largest on-chain options markets. Trading runs against a per-user smart-contract wallet on the Derive Chain, so collateral stays in the user's custody while orders match through the venue's orderbook.

The Derive Chain is an optimistic rollup that settles to Ethereum. Orders match off chain and settle on chain, pairing orderbook execution with self-custody. Orders are authorized with EIP-712 typed-data signatures from a session key scoped to a subaccount, which keeps the signing key separate from the wallet owner and lets users rotate or revoke access without moving funds.

Examples

Rust example testers live in crates/adapters/derive/examples/.

Overview

The Derive adapter is implemented in Rust under crates/adapters/derive. It exposes:

• DeriveHttpClient: Low-level REST connectivity to api.lyra.finance (mainnet) or api-demo.lyra.finance (testnet).
• DeriveWebSocketClient: JSON-RPC WebSocket transport with subscription tracking, reconnect, and signed order entry (the WebSocket Trading API).
• DeriveInstrumentProvider: Per-currency instrument fetch and caching.
• DeriveDataClient: Live market data client.
• DeriveDataClientFactory: Data client factory for the live node builder.
• DeriveExecutionClient: Live execution client for signed order, cancel, query, and report flows.
• DeriveExecutionClientFactory: Execution client factory for the live node builder.

Execution flows use EIP-712 typed-data signing against the Derive Chain per-action module contracts.

Derive documentation

Derive publishes API documentation at docs.derive.xyz. Refer to it alongside this guide for additional details.

Products

Symbology

Derive instruments use the native venue symbol with the venue suffix .DERIVE:

• Spot: ETH-USDC.DERIVE (base currency, quote currency).
• Perpetual: ETH-PERP.DERIVE, BTC-PERP.DERIVE.
• Option: ETH-20260626-3000-C.DERIVE (currency, expiry, strike, kind).

The first hyphen-separated segment of the symbol is the underlying currency. The provider fetches public/get_instruments once per currency, so subscribing to a new currency triggers a lazy REST fetch when auto_load_missing_instruments is enabled (the default).

The adapter routes on the venue instrument_type (perp, option, erc20), not on the symbol suffix, so spot pairs need no special symbology parsing. Spot reuses the same Trade-module signing path as perps and options; the in-repo fixtures under crates/adapters/derive/test_data/spot/ capture the spot instrument, order book, ticker, and trade field shapes the parser and execution paths are pinned to.

Environments

Configure the environment with the DeriveEnvironment enum on either client config.

Testnet is a separate chain with its own session keys and balances; mainnet and testnet API keys are not interchangeable. Public market data (book, ticker, trades) does not require credentials.

EIP-712 Protocol Constants (DOMAIN_SEPARATOR, ACTION_TYPEHASH, per-action module addresses) for both networks are shipped in crates/adapters/derive/src/common/consts.rs and tracked against Derive's Protocol Constants reference. DeriveExecClientConfig::domain_separator, action_typehash, and trade_module_address accept per-instance overrides that take precedence over the shipped values.

Testnet onboarding

Derive labels the demo environment "testnet" in the web app and "demo" in the API hostname. This guide uses "testnet" to match the dashboard and our DeriveEnvironment::Testnet enum. Steps to reach a position where the execution client can submit a signed order:

1. Sign in to the testnet dashboard. Open testnet.derive.xyz and connect an EVM wallet (MetaMask, WalletConnect, social login, etc.). This is the owner EOA that authorises the smart- contract wallet below.

2. Register the Derive Chain smart-contract wallet. First sign-in deploys a per-user smart-contract wallet on the Derive testnet chain. The address shown under "Developers" -> "Derive Wallet" is the wallet_address (and the X-LYRAWALLET header) the client uses. It is distinct from the EOA you just connected.

3. Create a subaccount. Open a subaccount under the wallet (Standard Margin is the simplest mode for test trading). The integer id is the subaccount_id the client signs each private/order request against.

4. Generate a session key. Under "Developers" -> "Session Keys", create a session key scoped to the subaccount and copy the raw secp256k1 private key. This is the session_key value; it never leaves the client and is redacted from Debug output. Session keys can be rotated or revoked from the same panel.

5. Fund the subaccount via the faucet. The testnet dashboard exposes a USDC faucet that drips test collateral. Deposit into the subaccount so the on-chain balance shows non-zero collateral; the API will reject orders until the subaccount has enough margin for the requested size.

6. Set the environment variables. Export the three values the client reads in testnet mode (or pass them on DeriveExecClientConfig, where the config field wins):

   set -gx DERIVE_TESTNET_WALLET_ADDRESS      "0x..."   # Derive Chain smart-contract wallet
   set -gx DERIVE_TESTNET_SESSION_PRIVATE_KEY "0x..."   # secp256k1 session-key private key
   set -gx DERIVE_TESTNET_SUBACCOUNT_ID       "12345"   # integer subaccount id

Minimum funding

There is no fixed venue minimum. The matching engine accepts any order that satisfies the subaccount's initial-margin requirement for the resulting position. Treat these as practical floors for the smallest viable test:

• Smoke test (submit and cancel, no fills): any positive USDC balance covers the signed-order plumbing.
• Round-trip an ETH-PERP fill: budget for the worst-case slippage-adjusted notional plus the initial-margin cushion. For one contract at $3500 and the venue's ~10% IM, that is roughly $350 collateral plus $400 cushion. Around $1000 USDC is a comfortable working balance for a first-fill test.
• Options: options carry higher IM than perps. Pull public/get_instrument for the option, multiply the contract size by mark price, then add the option-specific IM (visible on the instrument response) before sizing the deposit.

Use the private/get_subaccount endpoint after funding to confirm initial_margin/maintenance_margin headroom against the order you plan to submit; the adapter's query_account command emits this snapshot as an AccountState event so the strategy layer can gate trading on it.

Mainnet onboarding

Mainnet onboarding mirrors testnet against the production dashboard. Use real funds.

1. Sign in to the mainnet dashboard. Open derive.xyz and connect the EVM owner wallet (MetaMask, WalletConnect, social login, etc.). First sign-in deploys your Derive Chain smart-contract wallet.

2. Copy the wallet address. Under "Developers" -> "Derive Wallet", copy the smart-contract wallet address. This is the wallet_address the client signs against; it is distinct from the EOA you signed in with. Verify on the Derive Chain explorer that the address has contract code (EOAs do not).

3. Create or pick a subaccount. Open a subaccount under the wallet (Standard Margin is the simplest mode; switch to Portfolio Margin only once you understand the cross-margin semantics). The integer id is the subaccount_id.

4. Generate a mainnet session key. Under "Developers" -> "Session Keys", create a session key scoped to the subaccount and copy the raw secp256k1 private key. Session keys can be rotated or revoked from the same panel; prefer short-lived keys for exploratory tester runs.

5. Fund the subaccount. Deposit USDC (or supported collateral) into the subaccount via the dashboard's deposit flow. Confirm via private/get_subaccount (or the adapter's query_account) that collaterals_value and initial_margin headroom cover the intended order before submitting.

6. Set the environment variables. Export the three mainnet values (or pass them on DeriveExecClientConfig, where the config field wins):

   set -gx DERIVE_WALLET_ADDRESS      "0x..."   # Derive Chain smart-contract wallet
   set -gx DERIVE_SESSION_PRIVATE_KEY "0x..."   # secp256k1 session-key private key
   set -gx DERIVE_SUBACCOUNT_ID       "12345"   # integer subaccount id

   The node_exec_tester example is pinned to DeriveEnvironment::Testnet; flip the literal to DeriveEnvironment::Mainnet for real-funds runs. The node_data_tester and node_delta_neutral examples default to testnet and read DERIVE_ENVIRONMENT=mainnet to flip. Production deployments select the network via DeriveDataClientConfig::environment / DeriveExecClientConfig::environment.

Capabilities

Market data

Execution

Order placement, cancellation, modification, query, and report generation use Derive's EIP-712 self-custodial signing flow. Order-entry writes (private/order, private/cancel, private/cancel_all, private/replace) go over the WebSocket Trading API on the same authenticated session that streams account, order, trade, and balance state through the private channels ({subaccount_id}.orders, {subaccount_id}.trades, {subaccount_id}.balances). The signed EIP-712 body is identical regardless of transport.

Perpetuals, options, and ERC-20 spot pairs all use the Derive Trade module. Spot has no separate signing path, and reconciliation treats spot instruments like other instrument classes except for the reduce-only guard described below.

The adapter supports ordinary private/order requests: LIMIT and MARKET orders with GTC, IOC, or FOK time-in-force values. It does not encode trigger, algo, or TWAP order fields yet. Unsupported Nautilus order types are rejected before signing, so they cannot fill at the venue.

Execution instructions

Time in force

Derive documents gtc, post_only, fok, and ioc as its time_in_force values. The adapter rejects Nautilus values with no Derive equivalent before signing. Derive exposes post-only as a time_in_force value, so post_only cannot combine with IOC or FOK.

Spot reduce-only orders

Derive spot has no position concept, so a reduce-only spot order can never reduce anything. The venue always rejects it with error 11025; the adapter avoids that round-trip when it knows the instrument is spot. Cached spot instruments are denied with OrderDenied; lazily resolved spot instruments are rejected with OrderRejected during submit.

Reduce-only orders for perpetuals and options still reach the venue, where the outcome depends on the subaccount's position state. The derive-flatten bin closes derivative positions only and never spot, since flattening a spot balance would dump the base asset into a different quote.

Order rejection semantics

State-changing writes (submit_order, modify_order, cancel_order) are sent once over the WebSocket Trading API and are not replayed. The adapter keys terminal vs ambiguous handling off the WebSocket request outcome. It emits a terminal rejection event (OrderRejected, OrderModifyRejected, OrderCancelRejected) for definitive venue failures:

• Signed-action rejections such as invalid params, insufficient margin, or unknown orders.
• Venue business codes such as 11009 Zero liquidity.
• Post-only crossing rejections (11008 Post only order cannot cross the market), reported as OrderRejected with due_post_only=true.
• Rate-limit responses (-32000 Rate limit exceeded), where the gateway rejects the request before the matching engine sees it.

For post-only orders that reach the venue, Derive rejects a crossing order with JSON-RPC 11008 and message Post only order cannot cross the market. The adapter marks that terminal rejection with due_post_only=true; if a WebSocket/order-report rejection carries the same reason, the tracked order path applies the same classification. Local rejections for unsupported post-only IOC/FOK combinations are not marked due_post_only because they do not represent a venue crossing rejection.

For ambiguous write outcomes, the adapter emits no terminal event and lets WebSocket reconciliation or later status reports settle the state. The ambiguous set is deliberately narrow:

• -32603, a generic JSON-RPC internal error.
• A response that cannot be decoded (the action may have been processed).
• Request timeouts, dropped responses on reconnect, and transport errors.

This distinction protects both sides of the order lifecycle. A false terminal rejection can make the engine treat a live order as rejected; a false ambiguous outcome can leave an unplaced order hanging in Submitted forever because no WebSocket frame will arrive.

Subscription parameters

subscribe_book_deltas and subscribe_book_depth10 accept these subscribe_params keys:

subscribe_quotes accepts:

Unknown values are rejected at subscribe time.

Shared ticker subscription

Quotes, mark prices, index prices, funding rates, and option greeks are all derived from the same ticker_slim.{instrument}.{interval} WebSocket subscription. The adapter reference-counts the underlying WS subscribe call: the first feed subscribed for an instrument opens the channel and the last unsubscribe closes it. As a consequence, the interval from the first subscribe wins; subsequent feeds subscribing with a different interval share the existing channel.

Mark prices, index prices, funding rates, and option greeks all read fields that the venue includes in the full ticker payload (mark_price, index_price, perp_details.funding_rate, option_pricing). Observed Derive pushes on ticker_slim carry these fields, so the derived feeds work. If the venue ever pushes the compact SlimEnvelope shape on this channel, those derived feeds will silently produce no data for that frame; the quote feed still works because bid/ask are present in both shapes.

Funding rates are only meaningful for perpetuals, and option greeks only for options. Subscribing the wrong feed for an instrument's class (e.g. funding rates for an option) is accepted and the WebSocket subscription opens, but the parser returns no events for that feed because the venue payload lacks the relevant fields (perp_details for non-perps, option_pricing for non-options). Verify the instrument class before subscribing to derivative- specific feeds.

Configuration

Data client configuration options

Class/struct: DeriveDataClientConfig.

Execution client configuration options

Class/struct: DeriveExecClientConfig.

The default transport falls back to Tungstenite when the build disables the transport-sockudo feature.

The wallet_address, session_key, and subaccount_id fall back to environment variables when unset:

The session key is the secp256k1 private key registered on the wallet for API signing. The session_key field is redacted in Debug output and Python repr.

Python v2 live node

Rust-backed Python v2 nodes use LiveNode.builder(...) and pass concrete factory instances. The execution factory needs DeriveExecFactoryConfig, which wraps the trader and account identifiers with the underlying DeriveExecClientConfig.

from decimal import Decimal

from nautilus_trader.adapters.derive import DeriveDataClientConfig
from nautilus_trader.adapters.derive import DeriveDataClientFactory
from nautilus_trader.adapters.derive import DeriveEnvironment
from nautilus_trader.adapters.derive import DeriveExecClientConfig
from nautilus_trader.adapters.derive import DeriveExecFactoryConfig
from nautilus_trader.adapters.derive import DeriveExecutionClientFactory
from nautilus_trader.common import Environment
from nautilus_trader.live import LiveNode
from nautilus_trader.model import AccountId
from nautilus_trader.model import TraderId

trader_id = TraderId("TESTER-001")

data_config = DeriveDataClientConfig(
    environment=DeriveEnvironment.TESTNET,
    currencies=["ETH", "BTC"],
)

exec_config = DeriveExecClientConfig(
    environment=DeriveEnvironment.TESTNET,
    max_fee_per_contract=Decimal("1000"),
)

exec_factory_config = DeriveExecFactoryConfig(
    trader_id,
    AccountId("DERIVE-001"),
    exec_config,
)

node = (
    LiveNode.builder("DERIVE-001", trader_id, Environment.LIVE)
    .add_data_client(None, DeriveDataClientFactory(), data_config)
    .add_exec_client(None, DeriveExecutionClientFactory(), exec_factory_config)
    .build()
)

Do not pass DeriveExecClientConfig directly to add_exec_client; the Derive execution factory requires the wrapped DeriveExecFactoryConfig so it can create the ExecutionClientCore with the correct trader and account identifiers.

Rust data client

use nautilus_derive::{
    common::enums::DeriveEnvironment,
    config::DeriveDataClientConfig,
};

let config = DeriveDataClientConfig {
    environment: DeriveEnvironment::Testnet,
    currencies: vec!["ETH".to_string(), "BTC".to_string()],
    ..Default::default()
};

Notable fields:

• currencies: which currencies to bulk-load on connect. Empty means lazy-load per subscribe.
• include_expired: include expired option rows from public/get_instruments.
• auto_load_missing_instruments: lazy-load on subscribe when an instrument is unknown.
• update_instruments_interval_mins: REST refresh interval (default 60 minutes).
• http_timeout_secs, ws_timeout_secs: transport timeouts.

Rust execution client

use nautilus_derive::{
    common::enums::DeriveEnvironment,
    config::DeriveExecClientConfig,
};

let config = DeriveExecClientConfig {
    wallet_address: Some("0x...".to_string()),
    session_key: Some("0x...".to_string()),
    subaccount_id: Some(1),
    environment: DeriveEnvironment::Testnet,
    ..Default::default()
};

Known limitations

• request_instruments requires at least one configured currency in DeriveDataClientConfig::currencies; the venue's public/get_instruments endpoint is scoped per-currency and the adapter does not enumerate the currency universe.
• The data_client.rs integration test asserts the set, not the order, of recorded REST calls because fetch_instrument_definitions issues the perp and option requests in parallel via tokio::try_join!.
• Venue does not push instrument status, instrument close, or candle subscriptions; the ticker payload carries margin parameters and is_active, and bars are REST-only.
• The book snapshot REST endpoint and historical book deltas / historical quote endpoints are not exposed by the venue. See the capabilities table above.
• Derive's official REST docs mark public/get_ticker as deprecated in favor of public/get_tickers as of December 1, 2025. The adapter uses public/get_tickers for quote snapshots and option-chain forward-price bootstrap.