The borrower will deposit their collateral and use it to get a loan. In the background, the protocol calculates the average value of a given NFT, its volatility, and based on your borrow amount the strike is auto-calculated. To start we will set the expiration to 30 days. This means that every 30 days, the system will recalculate the required option contract to be purchased. If all else stays the same (value of your NFT, total loan outstanding and etc.), every 30 Days the repurchased premium put option fee will be added to your cumulative borrowed amount, making your liquidation price slightly increase.