Transaction Flow

When users request a price, the pool's supply and demand for capital uses the underlying option dynamics to determine the price.

zkVault introduces a distinctive strategy for trading asset pairs, featuring two available pools: the Entry pool and the Exit pool. This grants liquidity providers the flexibility to choose their preferred pool for underwriting, while option buyers enjoy the freedom to select their desired trading direction. Such a setup fosters a mutually beneficial outcome, creating a win-win situation for liquidity providers and option buyers within the zkVault ecosystem.

When a user intends to buy an option from the pool, they can effortlessly transmit the option details they wish to purchase to the pool. In response, the pool will provide a quoted price for the selected size, strike price, and maturity date specified by the user. If the user is satisfied with the price offered, they can proceed to execute the trade by initiating an on-chain transaction.

Transaction Flow

1. Send a request to the pool, specifying the following values: strike price maturity size of option

2. Pool sends back a quoted price for the option.

3. If the user agrees with the price, they can confirm and execute a transaction to purchase the option at the specified price (allowing for slippage, in case another user simultaneously purchases an option from the pool).

4. When the transaction is confirmed, the user receives the option they purchased. The user can then exercise the option at any time after purchase to unlock the rewarded tokens in the option and return the remaining capital to the pool. After expiration, if an option has not been exercised, its exercise value is locked to the value of the option at the time of exercise.

This ensures the option holder always receives the full value of their option and liquidity providers can immediately recover their capital after expiration.