📥Close Shorts
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Upon removing liquidity, a liquidity position's exposure to options is locked in. Subsequently, users have the choice to either wait until expiry to collaterals reserved for settlement—assuming the sold options expire worthless—or to immediately close by burning the corresponding quantity of option tokens that were shorted.
By burning an equivalent number of options they have shorted, users can directly close their short positions without having to wait until expiry. If not already owned, options tokens can be market , the same as how typically works.
Closing the short position will release an equivalent amount of collaterals as that of the options burnt. Additionally, the can be determined by calculating the difference between the premiums received from selling the options and the cost incurred from buying them back.
