According to Protocol 4.2, if Alice escrows her collateral and calls exercise, Bob will reveal the pre-image B in Contract A to reclaim asset G and Alice's asset A.
During the transfer from Bob to Dave, Alice can make a deposit and exercise her option at any time. This maintains the option's active status without delays.
Before expiration, Alice can exercise the option successfully, or if the exercise fails, she is compensated with the guarantee, ensuring fairness in Protocol 4.2.
It is evident that if Alice does not escrow the collateral, Bob will not reveal B, thus safeguarding both parties’ assets in the protocol.
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