# FAQ

## What are options? <a href="#eef2" id="eef2"></a>

An option is an agreement between two parties: a seller and a buyer. The seller writes the contract terms and sells them to the buyer for a premium. That means the seller now has an obligation, and the buyer has a right (but not an obligation) to exercise the contract terms upon expiration.

## **What types of options are there?** <a href="#ec54" id="ec54"></a>

There are two basic types of options: puts and calls. A put represents the right to **sell** the underlying asset at the strike price. On the other hand, a call conveys the right to **buy** an asset at the strike price.

## What is a strangle? <a href="#e318" id="e318"></a>

A strangle is an options strategy in which the investor holds a position in both a [call](https://www.investopedia.com/terms/c/call.asp) and a [put](https://www.investopedia.com/terms/p/put.asp) option with different [strike prices](https://www.investopedia.com/terms/s/strikeprice.asp) but with the same expiration date and underlying asset. A strangle is a good strategy if you think the underlying security will experience a large price movement in the near future but are unsure of the direction. However, it is profitable mainly if the asset prices swing sharply.

## What is the strike price? <a href="#id-2f53" id="id-2f53"></a>

The strike price is commonly used to designate the price at which the underlying asset will be sold or bought.

## What is Lido?

Lido is a decentralized staking protocol that allows users to stake their ETH and receive ETH 2 rewards.

## What is Aave?

Aave is a lending protocol that allows users to lend and borrow assets.&#x20;

## What is stETH?

stETH is the token that represents the staked [ETH in Lido](https://help.lido.fi/en/articles/5230610-what-is-steth).&#x20;

## What is aUSDC?

aUSDC is the interested bearing token that represents the supplied USDC into Aave.&#x20;

## What is the potential PnL ?

For stETHvv:

$$
Payoff stETHvv= (Principal Invested+0.8\*Profit fromExercise + ...
$$

$$
...+0.5\*LidoYield) \* 0.999
$$

For ETHphoria:

$$Payoff ETHphoria = PrincipalInvested + 0.9\* ProfitfromExercise$$

For FUD:

$$PayoffFUD = PrincipalInvested + 0.9\*ProfitfromExercise$$

## What are the tokens stETHvv, ETHphoria, and FUD I receive in the wallet once deposit into respective vaults?

The tokens represent your shares of the total vault.&#x20;

## Does the stETHvv, ETHphoria, and FUD token have a price?

Yes. right now the easiest way to calculate its price is by doing the math: TVL / Total Supply

NOTE: We will add a reading function directly in the contract to make that step easier.

## Are Pods Yield strategies tokens an [ERC-20](https://ethereum.org/en/developers/docs/standards/tokens/erc-20/)?

Yes.&#x20;

## What are the fees?

For stETHvv, the fee structure is composed of a 0.1% management fee at withdrawal and a 20% performance fee on exercised options.

For ETHphoria and FUD, the fee structure is composed of a 10% management fee on the weekly yield and a 10% performance fee on exercised options.&#x20;

## Do Pods Yield vaults follow the [ERC 4626 standard](https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/)?

Yes.&#x20;

## Is there a withdrawal window?

**No**. You can withdraw anytime.\
\
Although it depends on whether or not your deposits have been processed. You can check if the deposit was processed by clicking on the "show breakdown" inside the vault page.

<figure><img src="https://2404146246-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF11W8RHnSSX0N7QTxwlP%2Fuploads%2F0d7CMOjquGMgHUtk10ux%2FScreen%20Shot%202023-05-24%20at%2010.33.21%20AM.png?alt=media&#x26;token=426fa20c-27bb-48de-9088-24715214700a" alt=""><figcaption><p>Breakdown Position visualization</p></figcaption></figure>

* If your deposit has not been processed yet and you wish to withdraw, you can do it by using Etherscan directly using the `refund`  function on each vault address.

<figure><img src="https://2404146246-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FF11W8RHnSSX0N7QTxwlP%2Fuploads%2F1enDfQPF2KNt76Zr9lFT%2FScreen%20Shot%202023-05-24%20at%2010.35.46%20AM.png?alt=media&#x26;token=de1d6eb2-d388-41d9-aade-a5b6129310b9" alt=""><figcaption><p>Refund function on Contract/Write in Etherscan</p></figcaption></figure>

* If your deposit has been processed, you can withdraw at any time from the app's front-end.

**Tutorial video**: <https://youtu.be/FjCf59ldwxc>

Have more questions?&#x20;

Reach out to us on our channels:

* [Twitter](https://twitter.com/PodsFinance)
* [Discord](https://discord.com/invite/Qf7utym)


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