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DOV Trading and options
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.
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)
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.
Our vaults are cash settled, 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.
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.
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.
Please refer to the vault cards on our website as they have a step-by-step guide to the strategy currently used.
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.
The profits from exercising the options are locked in on expiry. There is no deadline for exercising oTokens.
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.
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.
No, rETH-THETA is constantly changing as premiums are collected each week. So rETH-THETA is not 1:1 to ETH.
You'll have to wait until the next Friday to stake your rTokens because your funds aren't actively used right now.