Intent-Based Trading System

Intent States

State	Description
PENDING	Initial state when intent is created by Party A
LOCKED	Intent reserved by a Party B
FILLED	Intent executed and trade created
EXPIRED	Intent passed expiration time
CANCELLED	Intent cancelled by Party A before filling
CANCEL_PENDING	Party A cancelled locked intent, awaiting Party B confirmation

Trading Lifecycle

Step 1: Send Open Intent

Party A initiates an open intent by calling:

function sendOpenIntent(
    address[] calldata partyBsWhiteList,
    uint256 symbolId,
    uint256 price,
    uint256 quantity,
    uint256 strikePrice,
    uint256 expirationTimestamp,
    uint256 mm,
    TradeSide tradeSide,
    MarginType marginType,
    ExerciseFee memory exerciseFee,
    uint256 deadline,
    address feeToken,
    address affiliate,
    bytes memory userData
) external returns (uint256 intentId)

• Fees: Party A pays three fees : protocol fee + affiliate fee + solver fee.

• Fund locking:

BUY options:

• Party A locks the option premium: premium = option_price × quantity.

• The premium will be transferred to Party B when the trade is settled.

SELL options

• Party A locks the required maintenance margin.

The intent is stored with PENDING status and becomes visible to eligible Party B accounts.

Step 2: Lock Open Intent

Eligibility requirements for Party B

• The intent is PENDING and has not expired.

• Party B’s address is included in partyBsWhiteList.

• Party B has a sufficient balance to meet its obligations.

• Party B accepts the terms.

function lockOpenIntent(uint256 intentId) external onlyPartyB

• The intent status changes from PENDING to LOCKED and is reserved for the locking Party B.

Step 3: Fill Open Intent

function fillOpenIntent(uint256 intentId, uint256 quantity, uint256 price) external

BUY options :

• The locked premium is debited from Party A and credited to Party B. It will be paid to Party B after settlement.

SELL options :

• The locked maintenance margin is added to Party A’s total maintenance margin balance for solvency checks.

• Party B pays the premium to Party A.

• A new trade is created with OPENED status.

• The intent status changes from LOCKED to FILLED.

Step 4: Close Position

4.1 Early Close (before expiration)

Party A may close a position early by sending a close intent:

function sendCloseIntent(
    uint256 tradeId,
    uint256 quantity,
    uint256 price,
    uint256 deadline
) external

BUY positions:

• The premium is paid to Party B.

• Party A sells the option back to Party B.

• Party B pays Party A the PnL:

  PnL = (closePrice − openPrice) × quantity.

  If PnL < 0, Party A pays the loss to Party B.

SELL positions

• The corresponding maintenance margin is released to Party A.

• Party A pays Party B the PnL (same formula as above).

  If PnL < 0, Party B pays the loss to Party A.

4.2 Settlement at Expiration

function executeTrade(
    uint256 tradeId,
    SettlementPriceSig memory settlementPriceSig
) external

• Party B keeps the premium already received (for trades where Party A was the buyer).

In‑the‑Money (ITM)

• Settlement price is obtained from the oracle.

• PnL = (settlementPrice − strikePrice) × quantity.

• The seller pays the positive P&L to the buyer (or vice versa if negative).

Out‑of‑the‑Money (OTM)

• The option expires worthless.

• Any maintenance margin locked by the Party A seller is released.