Withdrawing as an LP

Liquidity providers can initiate a withdrawal any time. Withdrawals will be processed via a first-in-first-out queue, subject to availability of free collateral and the withdrawal cooldown period. Currently the withdrawal cooldown period is set to 3 days. This cooldown period ensures thats malicious actors can't game the pool greeks and thus the options prices by depositing/withdrawing rapidly.

The amount of tokens receivable will be in a mixture of underlying and/or stable assets that results in the normalized delta of the pool being closer to the target delta.

The formula below details the withdrawal formula, when there exists a ratio of assets that will achieve the target delta. The protocol solves for uwu_{w} and sws_w, that is equivalent in dollar value to the LP tokens withdrawn.

Dt=DcuwNAVuwsw/pwhereDt=Target DeltaDc=Cummulative DeltaNAV=Net Asset Value in Underlyinguw=Underlying to withdraw (before fees)sw=Stable to withdraw (before fees)p=Underlying PriceD_{t} = \frac{D_{c} - u_{w}}{NAV - u_{w} - s_{w} / p} \\ where \\D_{t} = Target\ Delta \\D_{c} = Cummulative\ Delta \\NAV = Net\ Asset\ Value\ in\ Underlying \\u_{w} = Underlying\ to\ withdraw\ (before\ fees) \\s_{w} = Stable\ to\ withdraw\ (before\ fees) \\p = Underlying \ Price

Withdrawal fees are then subtracted from the assets withdrawn and redistributed fully back to the remaining liquidity providers.

Withdrawal Fee

The protocol imposes a small 0.2% withdrawal fee for LPs to provide an economic dissentive for users to game the Pool Greeks via deposits. Given sufficient duration of liquidity provisioning, this fee should be negligible.

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