Exercise Options
Exercising an option (redeem expired options) is done differently on each protocol and the smart contracts are built in a different way. Grix uses a library of adapters to integrate with each protocol and to give the user a great experience of managing their options portfolio in one place. It is important to remember that Grix is not responsible for the pricing differences or security of each DeFi options protocol it integrates with.
Exercising an open position works as follows:
Once the option is able to be exercised (depending on the type of option and the exercise date), the “Exercise” option on the Portfolio Management page is clickable.
When utilizing the Exercise button, the Grix UI is simply calling the exercise function (each protocol might have a slightly different name) from the protocol’s smart contract.
The relevant fees are deducted and funds move straight from the option’s writing protocol to the user. Grix is only acting as a web3 interface between the protocol’s smart contract and the user.
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