Withdrawals of LP token from OMM can happen at user’s request, subject to Trade Capacity availability. OMM withdrawal function approves withdrawals only if the requested amount will not bring OMM’s net delta out of tolerance.
If withdrawal would bring OMM net delta out of tolerance, partial withdrawal will be done and residual user’s request will be placed into Withdrawal Queue.
When a user submits OMM withdrawal request:
OMM checks if there are any users in Withdrawal Queue
If Withdrawal Queue is not empty, it’s placed into the withdrawal queue and waits for Trade Capacity to be available
If Withdrawal Queue is empty, withdrawal amount is checked against Net Delta to ensure that withdrawal will not bring net delta out of limit
If net delta would not be breached, withdrawal is processed, and the processing time will be at least T+2 days
If net delta would be breached, partial withdrawal is processed and an account with the residual withdrawal amount is placed into the Withdrawal Queue
Such a mechanism ensures that OMM has enough liquidity at all times and its risk management tolerances are not breached by withdrawals.
Please note that:
Withdrawals in queue can be processed as OMM hedges its position or new OMM deposits are processed
There will be OMM fee charged upon submission of withdrawal requests