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Position Lifecycle

The sequence from term selection to terminal payoff accounting.

#Lifecycle

ARRANGE position lifecycleDEFINE TERMSACCOUNT EXPOSUREACTIVE TERMEXPIRY STATESETTLE PAYOFFDELIVER RESULT
  1. Validate Stock Token identity, multiplier, quantity, strike and expiry.
  2. Lock the quoted economics and account for the underlying exposure.
  3. Create or replicate the short-call obligation and record net premium.
  4. Maintain a deterministic active-position state through the term.
  5. Observe the terminal price under the disclosed rule.
  6. Apply the call payoff and release the resulting assets or value.

#State boundaries

Pending execution, active exposure, expired, settled and exceptional states must be distinct. A failed transition cannot leave an undisclosed short call, stranded collateral or duplicate claim.

  • Use authoritative block and time references.
  • Snapshot quantity, multiplier and price units together.
  • Make settlement idempotent.
  • Separate protocol finality from interface acknowledgement.
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