Taker Renewal

Once a position has transitioned to an Expired state, it may be renewed by the owner of the position. For v1.0 of the protocol, we effectively treat a renewal as a simplified flow of a Close followed by a Protect.

Because the protocol fee is a simple function of time and amount protected, it is easily computable ex post purely depending on how long the position has been active, having already been withdrawn from the Book.

Allowing position changes slightly simplifies implementation, and also provides the user more flexibility with their position, which may be, overall, more appealing than re-protecting the original amount.

Thus, renewals are effectively a new position that closely follows a Close and Protect flow:

• Ability to select new floor

• Ability to select new Risk Rating

• New Cumulative Index

• New BUMP coordination incentive (added to their existing BUMP balance)

• Settled fee from deposited ETH

• Settled premium and penalty premium from deposited ETH