The fees on these contracts, and the selection of the contracts, is such that you're essentially playing the "picking up pennies in front of a steamroller" game

The fees on these contracts, and the selection of the contracts, is such that you're essentially playing the "picking up pennies in front of a steamroller" game. That's a bit of a silly game to play when the risk free rate of return is 4%-5%. Eg, to meaningfully hedge against tail risk of hurricanes I'd need to put in so much money that I might as well just buy some bonds with the principal and self-insure.