Users can go to https://www.arrow.markets/ to submit their Request-for-Quote (RFQ). Market Markers provide quotes at a regular cadence (also known as reference quotes). Once a user selects their desired parameters for the option, they then place a request for execution with a slippage tolerance on the Arrow platform.
Market Maker Quotes
Once the parameters are selected, market makers are notified of this request through an API. Market makers are then given a certain amount of time to provide quotes for options contracts.
The best quote is selected and the option contract(s) are created on-chain. Funds are transferred to the market maker.
Settlement and Expiration
At expiration, settlement occurs at the request of the user and the smart contract collects funds from the market makers and distributes them to users in the case of outstanding liabilities.