Vault Terminology

Strike Price
The set price at which the underlying asset can be bought and sold when the contract is exercised.
Expiry/Expiration Date
It refers to the date that the option contract expires. Before an option expires, its owners can choose to exercise the option, close the position to realize their profit or loss, or let the contract expire worthless.
Epoch refers to the different phases of an options contract. An epoch is made up of three phases, pre-invest, yielding and open.
European Option
All of Shield Vault products are European options where vault issuers are not able to exercise the option early until the expiry date.
Settlement Price
There will be a settlement price for each vault at the end of every epoch. The settlement price is determined automatically by smart contracts with pre-selected price feed by the vault issuers, either Chainlink or DEX.
Covered Call
Covered call strategy is when an investor who holds a long position in an asset then sells call options on that same asset to generate an income stream. It is a popular option strategy used to generate income in the form of option premiums.
Wedding Cake
An option struture which pays a fixed payout based on the movement of the underlying reference rate within certain pre-defined barriers.