Maker Withdrawal

The jth Maker’s payout is a linear function of the current Market Yield according to their proportional share, depending on whether the protocol is in Surplus or otherwise. At withdraw-time, the jth Maker’s withdrawal can be calculated as:

Note, "ExpiredProtocolFee" is the protocol fee for the period that the position was in an expired state.

Similar to Takers, we must also capture the time period that a Maker accrues the ‘expired’ (penalty) rate. For the positive yield case, the withdrawal amount:


For the negative Yield case, the withdrawal amount:


Global state mutates at withdraw-time:

When a Maker leaves, the market’s Debt decreases by their deposit amount. After this point, the Yield Target (E) will increase less aggressively each time a new premium is computed and applied. E is also decreased after a Maker leaves, irrespective of whether they have a positive or negative actual yield, according to their simple share of Debt.

Note that it is important that we mutate the state of E before D to ensure correctness, given that Et+1 = f(Dt) , at Maker Withdraw and Renew. We do not increase E at Maker Deposit (it is incremented when computing the premium).

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