Solvency & Positions & Settlement
Wasabi Options are fully collateralized, and there is no risk of insolvency or outside manipulation. The option holder can decide to exercise it whenever they want, regardless of floor price or outstanding listings.
Since the option positions are also NFTs, someone who purchases a Wasabi Option will receive an ERC-721 token representing their option. These tokens are "exercisible" until their expiration dates. After they expire, the user can keep the token; however, it will lose its functionality.
Wasabi creates meta markets by representing the position as a tradable contract. Option holders can trade, exercise, or interact with their options with various other protocols.
Wasabi's settlement system is independent of a floor price feed. It is ultimately up to the option holder to decide if they want to exercise their option no matter what the current floor is, protecting against manipulations. This enables full self-custody and decentralization.