Ostium Unveils Phase Two Compensation Plan: Users with Losses Over 1,000 USDC Can Choose Installment Repayments or Equity Conversion

BlockBeats news, October 9: Decentralized derivatives protocol Ostium has announced an update to the design of the second-phase loss recovery plan for OLP holders. For users with losses exceeding 1,000 USDC who did not opt for the expedited distribution plan, two recovery paths are offered: the default Option A provides installment-based USDC repayments, while Option B allows some or all unrecovered losses to be converted into Ostium Labs equity.

Option A will distribute recovered funds from the first-phase settlement and future recoveries on a pro-rata basis, and allocate a certain percentage of protocol and Gateway revenue for compensation. Currently, 50% of Ostium's opening fees are planned to be included as a funding source, and partner incentives or revenue sharing may also be introduced in the future.

Option B allows eligible users to convert some or all remaining losses into equity at the valuation of Ostium Labs' next priced financing round, with the same equity class as the team. The specific allocation ratio and related thresholds are still to be determined.

The second-phase portal is expected to open on October 30. At that time, eligible users' outstanding losses will be recorded in Option A contracts, and subsequent pro-rata claims for repayments can be made; users may also set in advance the proportion of losses they intend to convert into equity, but this intention is non-binding. After the next financing round is priced, users will receive a formal selection window; if total equity applications exceed the set cap, allocation will be pro-rata, and the unconverted portion will remain in Option A.

Ostium emphasizes that this recovery plan is offered voluntarily and does not guarantee that all losses will be recovered. The equity allocation ratio, specific mechanisms, and thresholds for each category are still being developed.