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Options expire at fixed, scheduled times shown on every contract before you trade. Settlement is automatic — neither buyers nor sellers need to take any action, be online, or hold anything in their wallet at expiry.
At expiry, the settlement price is read from the protocol's price oracle (Alpaca/Chainlink/Pyth feeds for the underlying). This single print determines every contract's outcome at that expiry. The same price applies identically to buyers and sellers — there is no discretion in settlement.
Out-of-the-money: nothing moves. Buyers' premiums (already paid at purchase) remain with the pool's depositors.
In-the-money: the payout — intrinsic value up to the cap — is transferred from the dCDS pool to the buyer, denominated per the contract terms. Sellers' pool shares are unchanged; the pool balance backing each share adjusts.
Buyers: premium leaves your wallet at purchase; payouts arrive automatically shortly after expiry settlement. Sellers: premiums accrue to your position from the moment each option is sold; deposits and withdrawals settle at expiry boundaries as described in Selling Options via dCDS.
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