diff --git a/lua/img-clip/config.lua b/lua/img-clip/config.lua
index 7c53a62..88b09da 100644
--- a/lua/img-clip/config.lua
+++ b/lua/img-clip/config.lua
@@ -4,6 +4,7 @@ M.config_file = "Default"
 M.sorted_files = {}
 M.sorted_dirs = {}
 M.configs = {}
+M.api_opts = {}
 M.opts = {}
 
 local defaults = {
@@ -205,7 +206,7 @@ local function get_custom_opt(key, opts, args)
 
   for _, config_opts in ipairs(opts["custom"]) do
     if config_opts["trigger"] and get_val(config_opts["trigger"]) then
-      return M.get_opt(key, {}, args, config_opts)
+      return M.get_opt(key, args, config_opts)
     end
   end
 end
@@ -225,7 +226,7 @@ local function get_file_opt(key, opts, args, file)
 
   for _, config_file in ipairs(M.sorted_files) do
     if file_matches(file, config_file) or file_matches(file, vim.fn.resolve(vim.fn.expand(config_file))) then
-      return M.get_opt(key, {}, args, opts["files"][config_file])
+      return M.get_opt(key, args, opts["files"][config_file])
     end
   end
 
@@ -247,7 +248,7 @@ local function get_dir_opt(key, opts, args, dir)
 
   for _, config_dir in ipairs(M.sorted_dirs) do
     if dir_matches(dir, config_dir) or dir_matches(dir, vim.fn.resolve(vim.fn.expand(config_dir))) then
-      return M.get_opt(key, {}, args, opts["dirs"][config_dir])
+      return M.get_opt(key, args, opts["dirs"][config_dir])
     end
   end
 
@@ -276,22 +277,21 @@ local function get_unscoped_opt(key, opts)
 end
 
 ---@param key string: The key, may be nested (e.g. "default.debug")
----@param api_opts? table: The opts passed to pasteImage function
 ---@param args? table: Args that should be passed to the option function
----@param opts? table: The opts table to use instead of the config
+---@param opts? table: Opts passed explicitly to the function
 ---@return string | nil
-M.get_opt = function(key, api_opts, args, opts)
-  if api_opts then
-    local val = M.get_opt(key, nil, args, api_opts)
-    if val then
-      return get_val(val, args)
+M.get_opt = function(key, args, opts)
+  -- use explicit opts if provided
+  -- otherwise, try to get the value from the api_opts
+  -- and then from the config file
+  if not opts then
+    local val = M.get_opt(key, args, M.api_opts)
+    if val ~= nil then
+      return val
     end
+    return M.get_opt(key, args, M.get_config())
   end
 
-  -- if options are passed explicitly, use those instead of the config
-  -- otherwise use the config (either from file or neovim config)
-  opts = opts or M.get_config()
-
   local val = get_custom_opt(key, opts, args)
   if val == nil then
     val = get_file_opt(key, opts, args, vim.fn.expand("%:p"))
diff --git a/lua/img-clip/fs.lua b/lua/img-clip/fs.lua
index 24978df..6e6b821 100644
--- a/lua/img-clip/fs.lua
+++ b/lua/img-clip/fs.lua
@@ -71,29 +71,28 @@ M.add_file_ext = function(str, ext)
 end
 
 ---@param ext string
----@param opts? table
 ---@return string
-M.get_file_path = function(ext, opts)
-  local config_dir_path = config.get_opt("dir_path", opts)
-  local config_file_name = os.date(config.get_opt("file_name", opts))
+M.get_file_path = function(ext)
+  local config_dir_path = config.get_opt("dir_path")
+  local config_file_name = os.date(config.get_opt("file_name"))
 
   local dir_path = config_dir_path
-  if config.get_opt("relative_to_current_file", opts) then
+  if config.get_opt("relative_to_current_file") then
     local current_file_path = vim.fn.expand("%:.:h")
     if current_file_path ~= "." and current_file_path ~= "" then
       dir_path = current_file_path .. M.sep .. config_dir_path
     end
   end
 
-  if config.get_opt("use_absolute_path", opts) then
+  if config.get_opt("use_absolute_path") then
     dir_path = vim.fn.fnamemodify(dir_path, ":p")
   end
 
   dir_path = M.normalize_path(dir_path)
 
   local file_path
-  if config.get_opt("prompt_for_file_name", opts) then
-    if config.get_opt("show_dir_path_in_prompt", opts) then
+  if config.get_opt("prompt_for_file_name") then
+    if config.get_opt("show_dir_path_in_prompt") then
       local input_file_path = util.input({
         prompt = "File path: ",
         default = dir_path,
diff --git a/lua/img-clip/init.lua b/lua/img-clip/init.lua
index 9871b54..979ed77 100644
--- a/lua/img-clip/init.lua
+++ b/lua/img-clip/init.lua
@@ -3,21 +3,23 @@ local paste = require("img-clip.paste")
 
 local M = {}
 
----@param opts? table
-M.setup = function(opts)
-  config.setup(opts)
+---@param config_opts? table
+M.setup = function(config_opts)
+  config.setup(config_opts)
 end
 
----@param opts? table
+---@param api_opts? table
 ---@param input? string
-M.paste_image = function(opts, input)
-  return paste.paste_image(opts, input)
+M.paste_image = function(api_opts, input)
+  config.api_opts = api_opts or {}
+  return paste.paste_image(input)
 end
 
----@param opts? table
+---@param api_opts? table
 ---@param input? string
-M.pasteImage = function(opts, input)
-  return paste.paste_image(opts, input)
+M.pasteImage = function(api_opts, input)
+  config.api_opts = api_opts or {}
+  return paste.paste_image(input)
 end
 
 return M
diff --git a/lua/img-clip/markup.lua b/lua/img-clip/markup.lua
index d072fa5..39de124 100644
--- a/lua/img-clip/markup.lua
+++ b/lua/img-clip/markup.lua
@@ -58,9 +58,8 @@ M.url_encode = function(str)
 end
 
 ---@param file_path string the file path or base64 string
----@param opts? table
 ---@return boolean
-function M.insert_markup(file_path, opts)
+function M.insert_markup(file_path)
   local file_name = vim.fn.fnamemodify(file_path, ":t")
   local file_name_no_ext = vim.fn.fnamemodify(file_path, ":t:r")
   local label = file_name_no_ext:gsub("%s+", "-"):lower()
@@ -83,13 +82,13 @@ function M.insert_markup(file_path, opts)
     cursor = "$CURSOR",
     label = label,
   }
-  local template = config.get_opt("template", opts, template_args)
+  local template = config.get_opt("template", template_args)
   if not template then
     return false
   end
 
   -- url encode path
-  if config.get_opt("url_encode_path", opts) then
+  if config.get_opt("url_encode_path") then
     file_path = M.url_encode(file_path)
     file_path = file_path:gsub("%%", "%%%%") -- escape % so we can call gsub again
   end
@@ -99,7 +98,7 @@ function M.insert_markup(file_path, opts)
   template = template:gsub("$FILE_PATH", file_path)
   template = template:gsub("$LABEL", label)
 
-  if not config.get_opt("use_cursor_in_template", opts) then
+  if not config.get_opt("use_cursor_in_template") then
     template = template:gsub("$CURSOR", "")
   end
 
@@ -117,7 +116,7 @@ function M.insert_markup(file_path, opts)
 
   vim.api.nvim_win_set_cursor(0, { new_row, new_col })
 
-  if config.get_opt("insert_mode_after_paste", opts) and vim.api.nvim_get_mode().mode ~= "i" then
+  if config.get_opt("insert_mode_after_paste") and vim.api.nvim_get_mode().mode ~= "i" then
     if new_col == string.len(line) - 1 then
       vim.api.nvim_input("a")
     else
@@ -129,9 +128,8 @@ function M.insert_markup(file_path, opts)
 end
 
 ---@param base64 string the file path or base64 string
----@param opts? table
 ---@return boolean
-function M.insert_base64_markup(base64, opts)
+function M.insert_base64_markup(base64)
   -- pass args to template
   local template_args = {
     file_path = "",
@@ -140,7 +138,7 @@ function M.insert_base64_markup(base64, opts)
     cursor = "$CURSOR",
     label = "",
   }
-  local template = config.get_opt("template", opts, template_args)
+  local template = config.get_opt("template", template_args)
   if not template then
     return false
   end
@@ -150,7 +148,7 @@ function M.insert_base64_markup(base64, opts)
   template = template:gsub("$FILE_PATH", base64)
   template = template:gsub("$LABEL", "")
 
-  if not config.get_opt("use_cursor_in_template", opts) then
+  if not config.get_opt("use_cursor_in_template") then
     template = template:gsub("$CURSOR", "")
   end
 
@@ -168,7 +166,7 @@ function M.insert_base64_markup(base64, opts)
 
   vim.api.nvim_win_set_cursor(0, { new_row, new_col })
 
-  if config.get_opt("insert_mode_after_paste", opts) and vim.api.nvim_get_mode().mode ~= "i" then
+  if config.get_opt("insert_mode_after_paste") and vim.api.nvim_get_mode().mode ~= "i" then
     if new_col == string.len(line) - 1 then
       vim.api.nvim_input("a")
     else
diff --git a/lua/img-clip/paste.lua b/lua/img-clip/paste.lua
index d9931b6..9f968dd 100644
--- a/lua/img-clip/paste.lua
+++ b/lua/img-clip/paste.lua
@@ -6,18 +6,17 @@ local fs = require("img-clip.fs")
 
 local M = {}
 
----@param opts? table
 ---@param input? string file path or url
 ---@return boolean
-M.paste_image = function(opts, input)
+M.paste_image = function(input)
   -- check if input (file path or url) is provided
   if input then
     input = util.sanitize_input(input)
 
     if util.is_image_url(input) then
-      return M.paste_image_from_url(input, opts)
+      return M.paste_image_from_url(input)
     elseif util.is_image_path(input) then
-      return M.paste_image_from_path(input, opts)
+      return M.paste_image_from_path(input)
     end
 
     util.warn("Content is not an image.")
@@ -32,14 +31,14 @@ M.paste_image = function(opts, input)
 
   -- if no input is provided, check clipboard content
   if clipboard.content_is_image() then
-    return M.paste_image_from_clipboard(opts)
+    return M.paste_image_from_clipboard()
   end
 
   -- if clipboard does not contain an image, then get the
   -- clipboard content as text and check attempt to paste it
   local clipboard_content = clipboard.get_content()
   if clipboard_content then
-    return M.paste_image(opts, clipboard_content)
+    return M.paste_image(clipboard_content)
   end
 
   util.warn("Content is not an image.")
@@ -47,8 +46,7 @@ M.paste_image = function(opts, input)
 end
 
 ---@param url string
----@param opts? table
-M.paste_image_from_url = function(url, opts)
+M.paste_image_from_url = function(url)
   if not config.get_opt("drag_and_drop.download_images") then
     if not markup.insert_markup(url) then
       util.error("Could not insert markup code.")
@@ -58,7 +56,7 @@ M.paste_image_from_url = function(url, opts)
     return true
   end
 
-  local file_path = fs.get_file_path("png", opts)
+  local file_path = fs.get_file_path("png")
   if not file_path then
     util.error("Could not determine file path.")
     return false
@@ -97,10 +95,9 @@ M.paste_image_from_url = function(url, opts)
 end
 
 ---@param src_path string
----@param opts? table
-M.paste_image_from_path = function(src_path, opts)
-  if config.get_opt("embed_image_as_base64", opts) then
-    if M.embed_image_as_base64(src_path, opts) then
+M.paste_image_from_path = function(src_path)
+  if config.get_opt("embed_image_as_base64") then
+    if M.embed_image_as_base64(src_path) then
       return true
     end
   end
@@ -114,7 +111,7 @@ M.paste_image_from_path = function(src_path, opts)
     return true
   end
 
-  local file_path = fs.get_file_path("png", opts)
+  local file_path = fs.get_file_path("png")
   if not file_path then
     util.error("Could not determine file path.")
     return false
@@ -145,15 +142,14 @@ M.paste_image_from_path = function(src_path, opts)
   return true
 end
 
----@param opts? table
-M.paste_image_from_clipboard = function(opts)
-  if config.get_opt("embed_image_as_base64", opts) then
-    if M.embed_image_as_base64(nil, opts) then
+M.paste_image_from_clipboard = function()
+  if config.get_opt("embed_image_as_base64") then
+    if M.embed_image_as_base64(nil) then
       return true
     end
   end
 
-  local file_path = fs.get_file_path("png", opts)
+  local file_path = fs.get_file_path("png")
   if not file_path then
     util.error("Could not determine file path.")
     return false
@@ -185,8 +181,7 @@ M.paste_image_from_clipboard = function(opts)
 end
 
 ---@param file_path? string
----@param opts? table
-M.embed_image_as_base64 = function(file_path, opts)
+M.embed_image_as_base64 = function(file_path)
   local ft = vim.bo.filetype
   if not M.lang_supports_base64(ft) then
     util.warn("Filetype " .. ft .. " does not support base64 encoding.")
@@ -207,14 +202,14 @@ M.embed_image_as_base64 = function(file_path, opts)
 
   -- check if base64 string is too long (max_base64_size is in KB)
   local base64_size_kb = math.floor((string.len(base64) * 6) / (8 * 1024))
-  local max_size_kb = config.get_opt("max_base64_size", opts)
+  local max_size_kb = config.get_opt("max_base64_size")
   if base64_size_kb > max_size_kb then
     util.warn("Base64 string is too large (" .. base64_size_kb .. " KB). Max allowed size is " .. max_size_kb .. " KB.")
     return false
   end
 
   local prefix = M.get_base64_prefix()
-  if not markup.insert_base64_markup(prefix .. base64, opts) then
+  if not markup.insert_base64_markup(prefix .. base64) then
     util.error("Could not insert markup code.")
     return false
   end
diff --git a/tests/config_spec.lua b/tests/config_spec.lua
index 2986efe..3a5d583 100644
--- a/tests/config_spec.lua
+++ b/tests/config_spec.lua
@@ -56,27 +56,27 @@ describe("config", function()
   end)
 
   it("should prioritize API options over config values", function()
-    assert.equals("custom-filename", config.get_opt("file_name", { file_name = "custom-filename" }))
-    assert.equals("some-dir-path", config.get_opt("dir_path", { dir_path = "some-dir-path" }))
+    config.api_opts = { dir_path = "some-dir-path", file_name = "custom-filename" }
+    assert.equals("custom-filename", config.get_opt("file_name"))
+    assert.equals("some-dir-path", config.get_opt("dir_path"))
+    config.api_opts = {}
   end)
 
   it("should execute functions that are passed in the API", function()
-    assert.equals(
-      42,
-      config.get_opt("life", {
-        life = function()
-          return 40 + 2
-        end,
-      })
-    )
+    config.api_opts = {
+      life = function()
+        return 42
+      end,
+    }
+    assert.equals(42, config.get_opt("life"))
+    config.api_opts = {}
   end)
 
   it("should allow nested API options", function()
     vim.bo.filetype = "markdown"
 
-    assert.equals(
-      "markdown-template",
-      config.get_opt("template", { filetypes = { markdown = { template = "markdown-template" } } })
-    )
+    config.api_opts = { filetypes = { markdown = { template = "markdown-template" } } }
+    assert.equals("markdown-template", config.get_opt("template"))
+    config.api_opts = {}
   end)
 end)
diff --git a/tests/paste_spec.lua b/tests/paste_spec.lua
index 7d0b273..0af1ce7 100644
--- a/tests/paste_spec.lua
+++ b/tests/paste_spec.lua
@@ -1,5 +1,6 @@
 local clipboard = require("img-clip.clipboard")
 local paste = require("img-clip.paste")
+local plugin = require("img-clip")
 local config = require("img-clip.config")
 local util = require("img-clip.util")
 local spy = require("luassert.spy")
@@ -44,7 +45,7 @@ describe("paste", function()
 
       spy.on(paste, "paste_image_from_path")
 
-      paste.paste_image({}, "/home/user/Pictures/image.png")
+      plugin.paste_image({}, "/home/user/Pictures/image.png")
       assert.spy(paste.paste_image_from_path).was_called()
 
       paste.paste_image_from_url = function()
@@ -53,7 +54,7 @@ describe("paste", function()
 
       spy.on(paste, "paste_image_from_url")
 
-      paste.paste_image({}, "https://example.com/image.png")
+      plugin.paste_image({}, "https://example.com/image.png")
       assert.spy(paste.paste_image_from_url).was_called()
     end)