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Liquidity providers can remove liquidity prior to expiry to finalize their options exposure. When removing liquidity, the smart contracts compute a finalized amount of net shorts in calls or puts owed to a position. After reserving collateral for settlement, unused liquidity is returned.
the breakdown of collaterals to be returned will be displayed upon liquidity removal:
- Seed Deposit: The amount of collaterals or options initially committed to the position.
- Fees: The transaction fees you have accumulated.
- Premium Proceeds: The premiums for your outstanding short options positions.
If you are closing your long positions, unsold options holdings at the time of liquidity removal will also be retrieved. You're free to hold till expiry or choose to sell again.