Disadvantages of Exchange-Traded Derivatives

In recent years, the popularity of exchange-traded derivatives has surged due to their ability to provide transparency and liquidity to the financial markets. One of the major advantages of these derivatives is that they are standardized contracts traded on organized exchanges, which helps mitigate counterparty risk. However, not all characteristics of exchange-traded derivatives are favorable for every investor.

Which of the following is a disadvantage specifically associated with exchange-traded derivatives compared to over-the-counter (OTC) derivatives?