Optix provides a platform to connect options buyers and sellers for any asset.
From the buyers perspective they choose the oracle, the direction(put or call) and the strike, expiry & size. The best price is offered to them from the set of available vaults.
Option sellers can either create and operate their own vault or they can provide liquidity to a vault that is operated by someone else. Many independent vaults can sell options for a given oracle. The vault operator is responsible for pricing the options correctly. Vault liquidity providers are responsible for hedging their exposure.
A new contract is created for every vault. Each vault has one erc20 collateral token associated with it that cannot be changed. A vault can be linked to one or more oracles. A single vault can provide liquidity for multiple oracles, both puts & calls for them across a strike/expiry price surface.
Each vault owner/operator is responsible for ensuing the pricing is accurate. Liquidity providers are responsible for hedging their exposure.
The vault itself is an erc20 token that represents the proportional ownership of the vault.
Let's say the vault collateral is USDC and it is has 900 USDC in it. You deposit 100 USDC so now the vault has 1000 USDC as collateral and you own 10% of the vault tokens.
If vault sells options profitably and has 1500 USDC then you still have 10% of the vault tokens but your share is now worth 150 USDC.
With the same vault above where it has 900 USDC in it and you deposit 100 USDC.
If vault sells options and loses money then it has has 500 USDC then you still have 10% of the vault tokens but your share is now worth 50 USDC.