Deleting a Hedge

How to cancel or delete a deal.

All tools in our ecosystem support the deletion of a deal. You can delete call options, put options, and equity swaps you wrote under specific conditions.

Conditions for Deleting a Hedge

• Untaken Deal Deletion:

  • You can delete a hedge before it is taken or bought (i.e., when the taker is address(0)).

• Taken Deal Deletion:

  • You can delete a hedge after it has expired and if the taker has lost the rights to exercise it.

• Equity Swaps:

  • Equity swaps cannot be deleted once taken; they can only be settled.

Deletion Fees

• Untaken Hedge:

  • Deleting an untaken hedge does not incur a fee for the writer.

• Expired and Unexercised Hedge:

  • Deleting a hedge that was taken but not exercised incurs a cancellation fee paid to the protocol.

  • The fee is charged in the underlying tokens to the writer.

  • The same fee calculation method used for settlement applies.

Deletion by Owner or Miner

• Owner Deletion:

  • The owner can delete an untaken hedge before it is taken (status = 1).

  • The owner can also delete the hedge after it expires and if it remains unexercised (status != 3).

• Miner Deletion:

  • A miner can delete an expired and unexercised hedge (status = 2) and receives a fee for doing so.

  • The fee is split between the miner and the protocol.

• Taker Deletion:

  • The taker is prohibited from deleting the hedge.

Balance Restoration

• Upon deletion, the remaining balance after fees is restored to the hedge owner.