Time Considerations

oCHI Discount and Maturity Date

Bermudan oCHI

oCHI ERC - 721 tokens are created and distributed on a epoch-basis at a given reward rate. Options also implicitly have an eligibility date, where American options are instantly eligible and European options are only eligible on the expiration date. American options are typically more valuable to holders since the instant eligibility gives more flexibility to the option holder. However, European options are more likely to be traded and many protocols have implemented dynamic pricing models to establish liquid options markets. Bermuda Options are sandwiched between American and European style options. A Bermuda option can be exercised on several dates after the lock-in period and before the expiry of the contract.

Each oCHI token has different characteristics expressed regarding the lock-in period, exercise window and strike price to accommodate users' preferences. Users can freely select to exercise their options within one week and two years from the date of oCHI issuance.

Lock-In Period

oCHI recipients need to select the lock-in window of a minimum of one week and a maximum of one year, during which they cannot exercise the oCHI. The longer the locking period, the lower the strike price and the larger the amount of POL trading fees the recipients earn. Users need to be familiar with the lock-in period as this gives them the context of when their opportunity to exercise will become available.

Exercise Window

oCHI recipients need to be aware of the eligibility window during which they can exercise the oCHI. This aspect gives them the context of when their opportunity to exercise will be available and when it will expire. The exercise window is equivalent to the lock-in period to provide users flexibility with exercise dates. oCHI holders can freely exercise their options from the lock-in period end date to the option's expiry date.

Expiry Date

oCHI recipients must be familiar with the expiry date of their option as this is the last day for exercising their position. The exercise date of the oCHI recipient is computed at the date of issuance, and it considers various factors such as the lock-in period and exercise window:

expiry date = issuance date + lock-in period + exercise window

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