On the expiration date of a vault, it will be settled. Typus Options are cash-settled. Call options are settled in tokens (such as $SUI) while put options are generally settled in stablecoins (such as $USDC).
The profit and loss of Vault Depositors (Option Sellers) will be calculated by the Strike Price and Settlement Price. Performance Fee will be re-calculated and auto-balanced in Reward (Premium) based on the real payoff of Vault Depositors (Option Sellers).
In the first example we used in Option Seller and Option Buyer, when the SUI call option is exercised, the call option buyer will receive SUI tokens that were collateralized by the call option seller.
In the second example, when the SUI put option is exercised, the put option buyer will receive USDC tokens that were collateralized by the put option seller.