Vault Terminology

Terminology	Description
Underlying Asset	The asset that you are depositing into the vault.
Strike Price	The price at which the underlying asset can be bought and sold. In physically settled options, the actual underlying must be delivered while in cash-settled options, the difference between the market price and strike price must be paid by the seller when the product expires in-the-money.
Tenor	Tenor refers to the duration or term life of a derivative contract. Typically, in the context of structured products, investors would see a “weekly” or “bi-weekly” tenor indicating the duration of the contract.
Expiration	Expiry refers to the date/time when the contract expires. Let's say an option contract starts on Friday at 8:30 am UTC with a 1-week tenor. The option contract expires 1 week later on a Friday at 8:30 am UTC. For European options, the buyer would have the right to exercise the option contract upon the option’s expiration date.
Epoch	The term 'Epoch' refers to the distinct phases of a vault. Before the start of a new epoch, the vault collects all assets from investors in the deposit phase. In the next phase, an auction is conducted where market makers take the opposite side of the trade conducted through the vault. Finally, once both counterparties agree on a price, the trade is confirmed and is observed through the tenor of the vault. Following the expiry, a new epoch commences and the vault restarts the whole process.
Auction	Each vault trades structured products on behalf of the vault users to whitelisted auction participants who are accredited market makers. During each auction, the auction participants would place their bids to trade the vault contract. The auction is held off-chain and the winner is assigned as the vault’s designated maker by the manager of the vault.
Settlement	Upon the expiration of the options contract (at the end of the tenor of the vault), the settlement process occurs where the buyer has the right to exercise the option contract if it's “in-the-money”.