Auction Lifecycle

Each auction involves has five stages: Uninitialized, Initialized, Finalized, Processed, and Cancelled. Depending on the stage, certain functions will be unrestricted.


The auction is initialized by Vault on Thursday at ~8am UTC. If Vault fails to provide valid initialization parameters or does not set the auction prices before the auction starts, the auction is cancelled.

Users may add/cancel limit orders following a successful auction initialization.


The auctions will start on Friday at 4pm UTC. Users may add market orders and add/cancel limit orders. After each order is placed, Auction checks if all of the available collateral has been used and whether the auction has exceeded its total time, if either condition is true, the auction may be finalized.

Auction prices may be set within 30 minutes of the auction start time. If the prices are not set before the auction starts, the auction will automatically cancel.


Once the auction has been finalized users will no longer be able to add or cancel orders. Vault must process the auction and transfer the premiums from Auction.


After Vault processes the auction, users may withdraw their long tokens after a 24 hour wait period.


At any part of the lifecycle, an auction can be cancelled. In this case, the auction will immediately transition to the cancelled stage and option buyers will be refunded the full amount paid.

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