> For the complete documentation index, see [llms.txt](https://docs.kyte.sh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kyte.sh/protocol/lifecycle.md).

# Position lifecycle

Every state a position can be in, and every way it can move.

{% hint style="success" %}
**In short.** **Open → Filled → Exercised** or **Expired**, or **Open → Cancelled**. Status only moves forward, and because exercise needs `now < expiry` while expire needs `now ≥ expiry`, exactly one of them can ever succeed.
{% endhint %}

<figure><img src="https://996751035-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVsnNtaBRxeClOSpEHWrf%2Fuploads%2Fgit-blob-819851634cbc6ebeaaa9904710c5641fecd9c106%2Fdiagram-lifecycle.png?alt=media" alt="Every state a position can reach, and the call that moves it there"><figcaption><p>Every state a position can reach, and the call that moves it there</p></figcaption></figure>

<details>

<summary>Text version</summary>

```
              createOffer                     buy (before fill deadline)
 (nothing) ─────────────►  OPEN  ────────────────────────────────►  FILLED ──┬─ exercise (now < expiry) ─► EXERCISED
                             │                                              └─ expire (now ≥ expiry, anyone) ─► EXPIRED
                             └─ cancelUnfilled (seller, any time while open) ─► CANCELLED
```

</details>

`Status` only moves forward: `None → Open → {Cancelled | Filled → {Exercised | Expired}}`. Terminal status is written **before** any token transfer.

| Transition          | Who                                                        | Checks                                                                                                                                                                                            | Effects                                                                                                                           |
| ------------------- | ---------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- |
| **create**          | Seller (or Router for ETH puts)                            | Not paused; asset enabled (puts: puts enabled); amount > 0; strike ≥ min strike; premium ≥ 0.0005 ETH; 1 h ≤ duration ≤ 90 d; now < deadline ≤ expiry; exposure + amount ≤ cap; < 200 open offers | Fee rates snapshotted; collateral pulled with exact balance-delta check; `OfferCreated`                                           |
| **buy**             | Anyone but the seller (Router: on behalf of a beneficiary) | Not paused; Open; now ≤ deadline; premium ≤ maxPremium                                                                                                                                            | Status Filled; NFT minted to buyer; premium fee → FeeVault, rest → seller; `OptionBought`                                         |
| **cancelUnfilled**  | Seller                                                     | Open                                                                                                                                                                                              | Status Cancelled; collateral → seller; `OfferCancelled`                                                                           |
| **exercise** (call) | NFT holder (or Router for holder)                          | Filled; now < expiry; caller holds NFT                                                                                                                                                            | Status Exercised; NFT burned; holder pays strike: fee → FeeVault, rest → seller; tokens → holder; `Exercised`                     |
| **exercisePut**     | NFT holder                                                 | Filled; now < expiry; caller holds NFT                                                                                                                                                            | Status Exercised; NFT burned; tokens pulled exactly from holder → seller; WETH strike: fee → FeeVault, rest → holder; `Exercised` |
| **expire**          | Anyone                                                     | Filled; now ≥ expiry                                                                                                                                                                              | Status Expired; NFT burned; collateral → seller; `Expired`                                                                        |
| **expireMany**      | Anyone (keeper)                                            | ≤ 50 ids; skips ids that can't be expired instead of reverting                                                                                                                                    | Same as expire, per id                                                                                                            |


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://docs.kyte.sh/protocol/lifecycle.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

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.