> For the complete documentation index, see [llms.txt](https://docs.antimatter.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.antimatter.finance/antimatter-structured-product/defi-option-vault-dov/mechanism.md).

# Mechanism

## Process Architecture

![DeFi Option Vault - Sequence Diagram](/files/cGpaTTVwyk9K5Q0eNoCl)

This sequence diagram illustrates the vaults process. The manager has a priveleged role in the sense that he creates an oToken with Strike Price and Delivery Date of the vault. Users can deposit their assets that will act as collateral. The vault closes and the weekly cycle starts. 

On Friday, the manager will use all the funds of the vault as collateral to mint the standard ERC-20 option contract token (oToken) on-chain through Opyn’s factory contract, and sell it directly to market makers.

The option expires after one week. On expiry the price is determined through Chainlink’s Data Feed, and the option premium + funds are withdrawable for the user. Funds can be left inside the vault and in this case will automatically be used for the next cycle.


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