# Cash-Secured Put Strategy ## Quick Overview Users invest stablecoins (USDC), which are used as collateral to sell put options based on the price of the underlying asset defined through an auction to option buyers. Selling options generates premiums, which are profits for the investors. Option strikes are set to avoid ITM expiration. Usually, options have a delta of 5-10%, but this can fluctuate in case of extremely low or extremely high volatility. 1. Investors deposit USDC to the Vault and receive vt1USDC tokens, representing investors' share in the vault. 2. Option buyers deposit USDC to the auction. 3. When the auction takes place, auction participants make bid orders on the price of NEAR Put options. Depending on the final price after the auction they get the remaining money back. 4. The Vault sends options to the auction winners. 5. USDC premium, which was received from the auction is allocated to the Vault. These funds make investors' revenue. If the expiration price of the Underlying Asset is below the strike price at the time of expiration, the difference between the expiration price and the strike price is paid to the buyers of the option. For example, the expiration price is 3 and the strike price is 5, so option buyers will receive 5 - 3 = $2 for each option purchased. In the event that the option payout exceeds the option premium, Vault investors lose money in USDC terms. If the expiration price of the asset is greater than or equal to the strike price, option buyers receive no payout. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.spin.fi/products/dovs/cash-secured-put-strategy.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.