When a vault sells an option, the premium is received once. Pulsar does not hand it out in a weekly lump. It releases it to depositors linearly, per second, over the life of that option.
The rules
- Withdraw any time. Your accrued premium is withdrawable at any moment.
- Leave early, take what's yours. If you leave early, you take exactly what has accrued to you so far.
- No dilution. Depositors who join later never dilute premium already earned.
How accrual works
For an option with premium P, opened at t0 and expiring at t1, the amount released by time t is linear in time:
released(t) = P × (t − t0) / (t1 − t0) for t0 ≤ t ≤ t1Your share of what is released is based on your deposit while it was released, which is why a later depositor cannot claim premium that accrued before they arrived.
Perpetual options stream natively
For perpetual options, the premium is itself a continuous funding stream, so the stream is native rather than accounted.