Withdrawing Options
You can withdraw options from Knox Finance as ERC-1155 options tokens 24 hours after the auction has been processed. Withdrawals may be made at any time if the auction has been cancelled.
If you let in-the-money options expire before withdrawing them, they are automatically exercised. Upon withdrawal, you will receive the proceeds of the options (their intrinsic value) instead of ERC-1155 options tokens.
When withdrawing options or proceeds from expired options, you also receive a refund for any unspent funds that were deposited when placing the orders to buy those options.
Here is a table of the most common scenarios and their outcomes when withdrawing:
Expired | Scenario | Outcome |
|---|---|---|
No | Your order was filled at the exact price you deposited | You only receive your fill |
No | Your order was filled at a lower price than you deposited | You receive your fill and a refund for unspent funds |
No | Your order was not filled | You only receive a refund |
Yes | Your order was filled at the exact price you deposited | You only receive the proceeds of the options, if any |
Yes | Your order was filled at a lower price than you deposited | You receive the proceeds of the options, if any, and a refund for unspent funds |
Yes | Your order was not filled | You only receive a refund |
A buyer places a limit order to buy 20 call options up to a maximum price of $100, depositing $2000 to do so. However, the Dutch auction reaches its clearing price at $70, so the buyer only pays 20 x $70 = $1400 for the options. Upon exercising the options (or their expiry), the buyer is refunded the unspent $600.
Last modified 8mo ago