Premium streaming

Premium is released to you linearly, per second, over the life of each option. Withdraw what has accrued at any time.

When a vault sells an option, the premium is received once. Vanterra does not hand it out in a weekly lump. It releases it to depositors linearly, per second, over the life of that option.

Same premium, two schedules: a weekly lump versus a per-second stream.

Payoff shape at expiry · not to scale

The rules#

Withdraw any time. Your accrued premium is withdrawable at any moment.
Leave early, take what's yours. If you leave early, you take exactly what has accrued to you so far.
No dilution. Depositors who join later never dilute premium already earned.

How accrual works#

For an option with premium P, opened at t0 and expiring at t1, the amount released by time t is linear in time:

text

released(t) = P × (t − t0) / (t1 − t0)      for t0 ≤ t ≤ t1

Your share of what is released is based on your deposit while it was released, which is why a later depositor cannot claim premium that accrued before they arrived.

Perpetual options stream natively#

For perpetual options, the premium is itself a continuous funding stream, so the stream is native rather than accounted.