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# FAQ

🙋🏽‍♂️No-dumb-questions page.

## What are options?

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?

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 strangle is an options strategy in which the investor holds a position in both a call and a put option with different strike prices, 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 does swing sharply in price.

## What is the strike price?

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

## What is Lido?

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

## What is stETH?

stETH is the token that represents the staked ETH in Lido.

## What is the potential PnL ?

$Payoff = (Principal Invested+0.8*Profit fromExercise + ...$
$...+0.5*LidoYield) * 0.999$

## What is the token stETHvv I receive in the wallet once deposited into the vault?

The stETHvv token represents your shares of the total vault.

## Does the stETHvv 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.

Yes.

## What are the fees?

0.1% management fee at withdrawal and 20% performance fee on exercised options

Yes.

## Is there a withdrawal window?

Right now yes. After you make the deposit, you will need to wait until the next round (after we process the deposit) to be able to withdraw.
NOTE: In our next vault version, there will be an emergency function to withdraw funds at any moment in time.

## Have more questions?

Reach out to us on our channels: