# 🎟️ $V Options (/options/v-options) This page explains how options work in The Vault and why The Vault uses them to distribute $V. Banner: A person holds a blank orange option card beside a cream calendar block, a plain token disc and a small unlocked clasp, symbolizing choosing whether to exercise.

Banner: A person holds a blank orange option card beside a cream calendar block, a plain token disc and a small unlocked clasp, symbolizing choosing whether to exercise.

## What Options Are [#what-options-are] Options are financial contracts that give someone the right, but not the obligation, to buy or sell an asset at a specific price, at or before a specific time. Real-life analogy: think of paying a deposit to reserve a plane ticket at a fixed price. You’re not required to buy it, but if prices rise, you win. That’s an option. ## How Options Work in The Vault [#how-options-work-in-the-vault] The Vault uses [vPoints](/vault-points/points-program) as the right to purchase $V under announced exercise terms. vPoints do not turn into $V automatically and cannot be locked. ### The Flow [#the-flow] * Users farm [vPoints](/vault-points/points-program) by engaging with The Vault strategies (e.g. [vSOL Multiply](/kamino-multiply/kamino-multiply-strategy)). * Check the eligible points token, points required per $V, strike price and exercise window on the [exercise page](https://thevault.finance/exercise-tokens). * During an open window, exercise eligible vPoints and pay the strike price to purchase $V. * Compare the exercise cost, including fees, with the market price before deciding whether to exercise. * Funds from minting go directly to The Vault treasury, strengthening the protocol (Figure 5.3). Earn eligible vPoints, check the exercise window and season terms, then choose whether to pay the strike price to purchase V. vPoints cannot be locked; purchased V can be locked.

Earn eligible vPoints, check the exercise window and season terms, then choose whether to pay the strike price to purchase V. vPoints cannot be locked; purchased V can be locked.

Figure 5.3: How $V options work ### Example (Simplified) [#example-simplified] * Suppose your eligible vPoints entitle you to purchase 10,000 $V. This is an illustration, not current program terms. * The actual points required per $V depend on the applicable season; check the exercise page. * Strike price: 0.0006 vSOL per $V. * At a market price of 0.0010 vSOL per $V, 10,000 $V has a quoted value of 10 vSOL. Exercising costs 6 vSOL at the example strike, a 4 vSOL difference before fees and any price changes. This is not a realized profit unless you sell. If the market price is lower than 0.0006? You simply don’t use the option. That’s the beauty: it’s optional. ## Why Options Instead of Airdrops [#why-options-instead-of-airdrops] * Reduces sell pressure: options are only exercised when market conditions are favorable, minimizing the risk of instant token sell pressure. * Aligns incentives: only engaged users who actively participate earn options and benefit from them. * Builds protocol reserves: payments made when exercising options go directly to The Vault treasury, funding future growth and resilience. * Encourages long-term value: the mechanism rewards commitment over speculation, fostering a healthier token economy. ## What’s Next [#whats-next] The exercise page shows availability and the terms for eligible vPoints. Season dates, strike prices and points-to-$V ratios can differ. Read [Introduction to options](/options/introduction-to-options) for the mechanics and [Locking $V](/vault-points/locking-v) for what you can do with purchased $V. ## Questions [#questions] Open a support ticket in [The Vault Discord](https://discord.gg/thevaultfinance) if you need help with vPoints or exercising. Follow the official support process.