Divergence Protocol
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      • 💧Open Shorts
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  • 💸Settle Short Position
  • 💸Settle Liquidity Position

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  1. User Guide
  2. 📉Short Options

⏰Expiry Withdrawal

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Last updated 1 year ago

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Following the expiration date, option pools can be settled by anyone through the oracle contract. If the calls (or puts) sold settle out of the money, your position turns profitable; otherwise, it incurs a loss.

💸Settle Short Position

Navigate to 'Dashboard-Position' to locate your short position. If the shorts expire out-of-the-money, you are in profit and one collateral can be withdrawn for each option token shorted. If not, you'll incur a loss, and your position will expire worthless.

💸Settle Liquidity Position

Navigate to 'Dashboard-Open Order' to locate your unfinalized liquidity position. The amount of collaterals you can claim from this position is determined by the following factors:

YouCanReceive=CollateralDeposit+Fees+Premium−SettlementValueYouCanReceive = Collateral Deposit + Fees + Premium - Settlement ValueYouCanReceive=CollateralDeposit+Fees+Premium−SettlementValue
  • Deposit: The amount of collaterals initially committed to the position, if any.

  • Fees: Total amount of transaction fees you have earned.

  • Premium: The amount of proceeds you received for selling the options.

  • Settlement Value: Collateral payout to holders of options that expire profitably.

Note: If the position is seeded with prior-purchased options, any options holdings that remain unsold at the time of settlement will also be returned. You will need to them yourself.

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