Liquidation

When the ETH price moves against a CALL or PUT position at strike time, the leverage position becomes eligible for liquidation. The liquidation time is determined by the following formula:

Where:

• Open Position Time is when the position is first opened.

• Expiration is set to 24 hours.

• Actual Leverage is the ratio of the position value to the margin.

Reward Distribution for liquidation is as follows:

• Caller: 50%

• Pub Vault: 45%

• Protocol: 5%