Polynomial Earn Docs
  • Overview
  • Polynomial Earn Vaults
  • FAQ
  • Fee
  • Risk
  • Rewards
  • FUNDAMENTAL
    • Options Primer
      • Call options
      • Put Options
      • The Greeks
    • Premium collection
  • TECHNICAL IMPLEMENTATION
    • Deposit
      • Deposit on Optimism
      • Deposit from Ethereum,Arbitrum&Polygon
    • Withdraw
    • Approve
    • Swaps
    • Synthetic Assets
    • Collateralisation
    • APR & APY Calculation
  • Vault strategies
    • Call Selling
      • Asset collateralised
      • sUSD collateralised
    • Put Selling
      • Vault strategy
  • Smart contracts
    • Audits
    • Deployed Contracts
  • 🫂Community Content
    • Community Content
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  1. FUNDAMENTAL

Premium collection

The premium is collected and distributed after the expiry date, if the option that was sold in the strategy expired worthless(or worth less than the premiums collected)

Yield is calculated as below; Yield = Total Premium Collected - Intrinsic value of options. Yield generated can be profitable or loss-making for the user. This depends completely on the market movements

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Last updated 2 years ago