> For the complete documentation index, see [llms.txt](https://docs.divergence-protocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.divergence-protocol.com/user-guide/short-options/close-shorts.md). # 📥Close Shorts Upon removing liquidity, a liquidity position's exposure to options is locked in. Subsequently, users have the choice to either wait until expiry to [withdraw](/user-guide/short-options/expiry-withdrawal.md) 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. ### ➖ Close Shorts 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 [bought](/user-guide/long-options/open-longs.md), the same as how [short covering](https://www.investopedia.com/terms/s/shortcovering.asp) typically works.
Closing the short position will release an equivalent amount of collaterals as that of the options burnt. Additionally, the [position's profit and loss (PNL) ](/user-guide/short-options.md)can be determined by calculating the difference between the premiums received from selling the options and the cost incurred from buying them back. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.divergence-protocol.com/user-guide/short-options/close-shorts.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.