Ribbon Finance
  • Introduction to Ribbon Finance
  • Aevo
  • FAQ
    • General
    • DOV Deposits
    • DOV Withdrawals
    • DOV Trading and options
    • Ribbonomics
  • Dune dashboards
  • Contribute
  • Security
  • Ribbon Theta Vaults
    • Introduction to Theta Vaults
      • Strike Selection and Expiry
      • Options Architecture
      • Options Settlement
      • Auctions
      • Risk profile
      • Fees
    • Theta vaults architecture
    • User guides
      • How to deposit
      • How to withdraw
      • How to pause and resume
      • How to stake, unstake vault shares and claim rewards
      • How to transfer vault positions
      • How to participate in Paradigm Auctions
      • How to redeem oTokens
  • RIBBON EARN
    • Introduction to Ribbon Earn
    • Ribbon Earn USDC
      • Risk-Free Rate
      • Twin win strategy
      • Vault specifications
      • Eligibility
      • Fees
    • Ribbon Earn stETH
      • What is a dolphin strategy?
      • Vault specifications
      • Risk profile
      • Fees
  • RIBBON LEND
    • Introduction to Ribbon Lend
      • Yields from unsecured lending
      • No lockups
        • Pool status
        • Default
      • Off-chain enforcement / credit underwriting
      • Built-in insurance
      • Fees
  • ribbon treasury
    • Introduction to Ribbon Treasury
      • Why Ribbon Treasury?
      • Partners
      • How to get involved
  • Ribbonomics
    • Overview and RBN tokenomics
      • Vote-Escrowed RBN
      • Fee Collection and Distribution
      • Liquidity Gauges and RBN Emissions
      • Gauge Weight Voting
      • Bribes
        • Guide to Boost Bribing
          • For Bribers
          • For veRBN Holders
      • Upgrades
    • How to lock RBN, boost and claim protocol revenues
  • Developers
    • Deployed Contracts
    • Ribbon Subgraph
Powered by GitBook
On this page
  • What is the fee structure?
  • How is APY calculated?
  • Are the management and performance fees included in the expected APY?
  • Where can I see the historical performance?
  • Are the management and performance fees included in the previous week's performance?
  • What asset are the vault yields paid in?
  • Are the vaults cash or physically settled?
  • Do vaults use a delta neutral strategy?
  • How is the strike calculated?
  • How can I find out the next strike in advance?
  • How is the IV calculated/sourced?
  • Where can I learn more about the strategies?
  • Can I buy the options written by the vaults?
  • I've bought some options and they are expiring ITM, do I need to do something to exercise?
  • How can I redeem my assets if the options expire in the money?
  • Is there a deadline for exercising oTokens?
  • The options expired in-the-money. Why can't I claim the collateral?
  • I've called the max redeem but I didn't get any token. Why?
  • Are vault tokens are 1:1 with the underlying?
  • I just deposited in a vault, why can't I stake any rTokens?

Was this helpful?

  1. FAQ

DOV Trading and options

PreviousDOV WithdrawalsNextRibbonomics

Last updated 2 years ago

Was this helpful?

What is the fee structure?

The vault fee structure consists of a 2% annualized management fee and a 10% performance fee. If the weekly strategy is profitable, the weekly performance fee is charged on the premiums earned and the weekly management fee is charged on the assets managed by the vault. If the weekly strategy is unprofitable, there are no fees charged.

How is APY calculated?

We calculate APY by getting the average of the past 4 week's annualized performance:

Weekly Yield = ((1+(Curr. Week’s Performance)^52)-1)*100

Projected Yield (APY) = Average of Past 4 Week's Weekly Yield (in the money weeks are excluded)

Are the management and performance fees included in the expected APY?

Yes.

Where can I see the historical performance?

Every product has a card with the vault's graphical representation of historical performance. You may refer for further insights.

Are the management and performance fees included in the previous week's performance?

Yes.

What asset are the vault yields paid in?

Yields are paid in the same underlying deposit asset. The only exception are the staked tokens vaults: stETH, rETH and sAvax. You can deposit either vanilla ETH/Avax or the staked versions but you'll be able to withdraw stETH, rETH and sAvax only.

Are the vaults cash or physically settled?

Do vaults use a delta neutral strategy?

No.

How is the strike calculated?

How can I find out the next strike in advance?

There is no way to know the strike in advance as it's calculated using last minute data feeds. For now, you can make an educated guess looking at 10d on Deribit.

How is the IV calculated/sourced?

The model for IV isn't open but based on IV at 10d and adjusted with historical volatility. We use the 10d IV from Deribit for ETH/BTC and roll our own algo for alts.

Where can I learn more about the strategies?

Please refer to the vault cards on our website as they have a step-by-step guide to the strategy currently used.

Can I buy the options written by the vaults?

I've bought some options and they are expiring ITM, do I need to do something to exercise?

There is no further action needed on your end as we are using Opyn V2, options self exercise when needed. You just need to claim them at any time.

How can I redeem my assets if the options expire in the money?

Is there a deadline for exercising oTokens?

The profits from exercising the options are locked in on expiry. There is no deadline for exercising oTokens.

The options expired in-the-money. Why can't I claim the collateral?

After the options expire at 8am UTC, there is about 1 hour dispute period for settlement. You can only claim the collateral with oTokens after 9/10 am UTC.

I've called the max redeem but I didn't get any token. Why?

If you called max redeem the same week you deposited, you wouldn't receive any tokens as your funds weren't used by the vaults.

Are vault tokens are 1:1 with the underlying?

No, rETH-THETA is constantly changing as premiums are collected each week. So rETH-THETA is not 1:1 to ETH.

I just deposited in a vault, why can't I stake any rTokens?

You'll have to wait until the next Friday to stake your rTokens because your funds aren't actively used right now.

Our vaults are , which means you do not need physically deliver an asset on expiry. Call options are cash-settled with the collateral asset, whereas put options are cash-settled with USDC.

Our V2 vaults use an algorithmic strike selection with a delta of 0.1 for writing options, see our blog post and the underlying Black-Scholes model . The process is currently managed offchain, because it would be very gas intensive and impractical.

Yes, if you'd like to participate in our auctions, please join our Telegram - and access our new auctions . For more information please refer to the guide .

Please refer to the Opyn V2 interface . Also, here's a .

here
cash settled
here
here
channel
website
here
here
practical guide