The controversy surrounding Nifty Options, an Ethereum-based NFT options platform, centers on its implicit exercise costs. While Nifty Options allows users to hedge, collateralize, and sell NFT options, critics highlight the hidden costs tied to exercising these contracts. The platform’s model involves a strike price (e.g., 50 ETH) and a premium (e.g., 1 ETH), but the gas fees and market volatility can significantly inflate the cost of exercising options. Additionally, the lack of transparency in fee structures and the complexity of blockchain transactions have sparked concerns among users. Some argue these costs undermine the platform’s promise of downside protection, making it less appealing for smaller investors. Nifty Options’ defenders, however, emphasize its innovative approach to NFT trading.