# Overview

**TL;DR**\
OLP price moves from two things: **fees** and **trader PnL**.\
What hits OLP—and when—depends on the vault’s **state**:

* **Undercollateralized (UC, c-ratio < 100%)** → OLP is direct counterparty to net trader PnL (more volatile, higher fee capture).
* **Overcollateralized (OC, c-ratio ≥ 100%)** → the **Buffer** takes first PnL; OLP only accrues opening fees (more stable).

> **Daily Settlements:** Rollover & liquidation fees and trader PnL settle **once per day**. Opening fees accrue **continuously** (per trade open).

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### What affects OLP price?

**Fees**

* **Opening fees** — 30% to OLP, **continuous** (each order open).
* **Rollover fees** — 100% to OLP in **UC**, **end-of-epoch**.\
  \&#xNAN;*(Applied on non-crypto pairs to keep positions open.)*
* **Liquidation rewards** — 100% to OLP in **UC**, **end-of-epoch**.

**Trader PnL**

* **UC:** Net trader PnL (since prior epoch) flows to OLP at **end-of-epoch** (price can gap up or down).
* **OC:** Net trader PnL accrues to the **Buffer**, not OLP.

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### Fees and Cadence by State

<table><thead><tr><th width="182.984375">State</th><th width="265.52734375">Accrues continuously (real-time)</th><th>Accrues at daily settlement</th></tr></thead><tbody><tr><td><strong>UC (c-ratio &#x3C; 100%)</strong></td><td><strong>30% Opening fees → OLP</strong></td><td><strong>100% Liquidations → OLP</strong><br><strong>100% Rollover → OLP</strong><br><strong>± Trader PnL → OLP</strong></td></tr><tr><td><strong>OC (c-ratio ≥ 100%)</strong></td><td><strong>30% Opening fees → OLP</strong></td><td></td></tr></tbody></table>

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### On-chain formulas (current contracts)

* **OLP Price**\
  `price = 1 + accRewardsPerToken - (accPnlPerTokenUsed > 0 ? accPnlPerTokenUsed : 0)`
* **Collateralization Ratio (c-ratio)**\
  `c_ratio = (1 + accRewardsPerToken - accPnlPerTokenUsed) / (1 + accRewardsPerToken)`

**Accrual variables**

* `accRewardsPerToken += (30% of opening fees) / OLP_supply` *(updates per order open — continuous)*
* `accPnlPerToken += (traderPnL - liquidation - rollover) / OLP_supply` *(updates at daily settlement)*
* `accPnlPerTokenUsed` is the value of `accPnlPerToken` actually applied to OLP price per state logic above.

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### Interacting with the vault

* **Deposit** → USDC enters vault immediately; converts to OLP at the next daily settlement (0-24 hours). Click Redeem to move OLP to your wallet. Cancelable before settlement.
* **Unlock** (after lock ends) → burn LOLP, receive ERC-20 OLP (Existing locked deposits only — new locks are no longer available).
* **Request withdraw** → submit at any time; processes at the settlement after the next one (24-48 hours). Cancelable before processing. You must Redeem settlement to receive USDC in your wallet.&#x20;
* **Withdraw (redeem)** → burn OLP for USDC once request matures (24-48 hours after submission).

For more information about [deposit](https://ostium-labs.gitbook.io/ostium-docs/vault/deposit) and [withdraw](https://ostium-labs.gitbook.io/ostium-docs/vault/withdraw).

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### Metrics to watch

Consult real-time metrics on [Dune](https://dune.com/ostium_app/stats) dashboard.

* **OLP Price** — primary performance metric.
* **TVL** — `OLP price × outstanding OLP`.
* **APR / historical fees** — realized fee yield; forecasts help frame expected APY.
* **c-ratio** — determines UC vs OC state.