Bondprotocol lets holders exercise eligible call oTokens for payout tokens

The call configuration defines both sides of the exchange

The FixedStrikeOptionTeller contract uses the option's configured assets and units to determine the exchange. An oToken is an ERC-20 token representing an option. For a call, the payout token is the asset its holder can buy. The quote token supplies the payment. The strike states quote tokens per payout token, while the oToken amount follows the payout token's units. The teller's exerciseCost view identifies the quote token and the payment a holder other than the configured receiver would owe for a chosen call amount.

An option also identifies its teller, eligibility timestamp, expiry timestamp, and receiver. Check the call setting before applying a call-exercise calculation. Options Liquidity Mining distributions and bond auctions concern how an oToken reaches a holder. The issued token's strike governs its exercise, independently of its acquisition price. The receiver address matters because it has a separate exercise branch.

Payment, burning, and collateral form one exercise

A non-receiver holder's call exercise exchanges quote-token payment for payout collateral and burns the selected oTokens as part of that operation.

The holder must already have the oTokens and enough spendable quote tokens, with sufficient allowance for the teller. The teller must receive the full quote payment; a transfer fee that leaves it short makes exercise revert. Authorizing a quote-token transfer doesn't exercise the option. The exercise call specifies the option-token address and amount; the teller checks the supplied token against its registered configuration. It then checks the exercise window before collecting payment. The exercised amount fixes how many payout-token units leave the collateral pool.

The exercise path calls the oToken's burn function directly. Its payment transfer uses the quote token's allowance, so these operations involve different token permissions.

A call exercise transfers the underlying payout tokens to the exercising holder. Physical settlement describes this exchange of tokens. The teller doesn't sell those payout tokens or calculate profit in a common currency.

A successful execution includes both the burn and the payout transfer. Submission alone doesn't establish those completed changes. If a required transfer or contract check reverts, the transaction rolls back its changes. The confirmed token movements distinguish the completed exchange from an approval or an unsuccessful attempt.

Does claiming an OLM reward deliver spendable payout tokens?

An Options Liquidity Mining (OLM) reward claim delivers call oTokens; receiving their underlying payout tokens requires exercise under the option's terms. The reward contract issues those options against payout-token collateral held by the teller. Claims can cover multiple epochs, and the OLM contract records the option token associated with each epoch. The exercise window continues to run while rewards remain unclaimed, so an accrued reward amount alone doesn't establish an exercisable balance. Once an epoch's option expiry has passed, OLM skips that epoch's unclaimed rewards.

The exercise window uses UTC day boundaries

Exercise is valid only when the execution timestamp is at least the eligible timestamp and strictly less than expiry. The teller evaluates time when the transaction executes. A request sent before expiry can therefore reach execution too late.

During deployment, this implementation rounds eligibility and expiry down to 00:00 UTC on their respective days. A stated expiry date therefore refers to that day's opening boundary. Local midnight can fall at a different instant. Use the stored timestamps when a calendar label seems inconsistent with availability. The teller also enforces a configurable minimum eligibility duration, whose permitted lower bound is one day.

Fees follow the payment branch and receiver

For a call holder other than the configured receiver, the teller deducts its protocol fee before forwarding quote-token proceeds. The required payment still follows the strike calculation. The fee reduces the receiver's proceeds; it doesn't reduce the call's payout-token amount. The particular teller's protocolFee setting supplies the rate, and authorized updates can change it. Network transaction costs sit outside this token accounting.

The configured receiver can unwrap oTokens it holds through another exercise branch during the same valid window. The teller burns those oTokens and returns their payout collateral without collecting quote tokens. That branch skips the ordinary protocol-fee calculation. The privilege follows the option's receiver address. An address doesn't obtain it simply by having issued the option or distributed its rewards.

Expiry moves reclamation to the configured receiver

The configured receiver alone can reclaim unexercised call collateral once the option expires. Reclamation requires a call to the teller; expiry doesn't automatically transfer the remaining assets. The amount follows the outstanding oToken supply, which excludes tokens burned during earlier exercises. Holding expired oTokens doesn't give another address access to that collateral. The receiver's reclamation route applies after expiry, while its unwrapping route uses the live exercise window.

A partial exercise leaves the remaining choice open

The exercise amount can cover only part of a holder's oToken balance, leaving the rest under their original terms. That bounds both the quote tokens required and the payout collateral released. The remaining oTokens keep the same strike and timestamps. If a required balance or allowance is insufficient, the exercise can't complete. Any quote-token allowance left after payment depends on the authorization's original size and the token's allowance behavior.

Stopping before submission leaves the exchange unexecuted. The remaining exercise opportunity still closes at the original expiry.

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