About Diffusal

┌─────────────────────────────────────────────────────────────────┐
│                     DiffusalOptionsQuoter                       │
│  • Main entry point for option pricing                          │
│  • Black-Scholes calculations with Greeks                       │
│  • Human-readable pair name queries                             │
└────────────────────────────────┬────────────────────────────────┘
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┌─────────────────────────────────────────────────────────────────┐
│                     DiffusalOracle (Unified)                    │
│  ─────────────────────────────────────────────────────────────  │
│  • Volatility (σ), Premium rates, Risk-free rate (r)            │
│  • Multi-source price aggregation (Pyth + Chainlink + Native)   │
│  • Named pair registration with human-readable identifiers      │
│  • Admin-controlled parameters via role-based access            │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                   DiffusalOptionsOrderBook                      │
│  ─────────────────────────────────────────────────────────────  │
│  • EIP-712 signed limit orders for options trading              │
│  • On-chain settlement with partial fill support                │
│  • Order cancellation and nonce-based invalidation              │
│  • Premium transfers in USDC collateral                         │
│  • Protocol fee system (maker, taker fees)                      │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                      DiffusalOptionsRFQ                         │
│  ─────────────────────────────────────────────────────────────  │
│  • EIP-712 signed RFQ quotes from Main Market Makers            │
│  • Direct trades between users and MMMs                         │
│  • Instant execution with professional pricing                  │
│  • Partial fills and nonce-based quote invalidation             │
│  • RFQ-specific fee structure                                   │
└─────────────────────────────┬───────────────────────────────────┘
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┌─────────────────────────────────────────────────────────────────┐
│               DiffusalOptionsSeriesRegistry                     │
│  ─────────────────────────────────────────────────────────────  │
│  • Series lifecycle management (create, validate, settle)       │
│  • Lazy series registration on first trade                      │
│  • Settlement price tracking for expired options                │
│  • TWAP-based settlement via DiffusalPriceHistory               │
│  • Operator pattern for authorized updates                      │
└─────────────────────────────┬───────────────────────────────────┘
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┌─────────────────────────────────────────────────────────────────┐
│                DiffusalOptionsPositionManager                   │
│  ─────────────────────────────────────────────────────────────  │
│  • Tracks user positions per option series (long/short)         │
│  • Entry premium tracking for PnL calculations                  │
│  • Operator pattern for multi-source position updates           │
│  • Main Market Maker (MMM) designation for non-liquidatable MMs │
│  • Option pair minting/burning for position management          │
└─────────────────────────────┬───────────────────────────────────┘
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┌─────────────────────────────────────────────────────────────────┐
│                   DiffusalCollateralVault                       │
│  ─────────────────────────────────────────────────────────────  │
│  • USDC collateral deposits and withdrawals                     │
│  • Portfolio margin with SPAN-like stress testing               │
│  • Equity = Deposit + Unrealized PnL                            │
│  • Initial/Maintenance margin enforcement                       │
│  • Liquidation health checks (Equity < MM)                      │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                   DiffusalSettlementEngine                      │
│  ─────────────────────────────────────────────────────────────  │
│  • Settles expired options at intrinsic value                   │
│  • Credits long holders, debits short holders                   │
│  • Single and batch settlement operations                       │
│  • Prevents double-settlement via position tracking             │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                  DiffusalLiquidationEngine                      │
│  ─────────────────────────────────────────────────────────────  │
│  • Liquidates undercollateralized users (Equity < MM)           │
│  • Closes positions at penalized mark price                     │
│  • Pays liquidator bounty (5% of debt)                          │
│  • External insurance fund covers shortfalls                    │
│  • Supports partial liquidation (50% of positions)              │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                    DiffusalInsuranceFund                        │
│  ─────────────────────────────────────────────────────────────  │
│  • Receives all protocol trading fees (feeRecipient)            │
│  • Covers shortfalls when called by LiquidationEngine.          │
│  • Owner-controlled withdrawals                                 │
│  • Stores funds in CollateralVault deposit                      │
└─────────────────────────────────────────────────────────────────┘

┌─────────────────────────────────────────────────────────────────┐
│                    DiffusalPriceHistory                         │
│  ─────────────────────────────────────────────────────────────  │
│  • Stores price snapshots for TWAP calculations                 │
│  • 2-hour circular buffer with 240 snapshots (30s intervals)    │
│  • 1-hour TWAP window for settlement price calculation          │
│  • Permissionless snapshot taking                               │
└─────────────────────────────────────────────────────────────────┘