Ostium announces phase 2 compensation plan: Users who lost more than 1000 USDC can choose between installment repayments or converting their funds to equity.

Decentralized derivatives protocol Ostium has unveiled an updated design for its Phase 2 loss recovery plan for OLP holders. For users who suffered losses exceeding 1,000 USDC and did not opt for the convenience distribution scheme, two recovery options are available: Default Scheme A offers installment USDC repayments, while Scheme B allows converting part or all of unrecovered losses into equity in Ostium Labs. Scheme A will distribute funds recovered from Phase 1 settlements and future recoveries proportionally, with a portion allocated from protocol and Gateway revenues for compensation. The current plan earmarks 50% of Ostium’s open position fees as the funding source, and partner incentives or revenue shares may be added in the future. Scheme B allows eligible users to convert part or all of their remaining unrecovered losses into equity at the valuation of Ostium Labs’ next financing round. The equity class matches that of the team, though specific allocation ratios and thresholds are still pending. The Phase 2 portal is scheduled to open on October 30. Eligible users’ outstanding losses will be credited to the Scheme A contract, enabling them to claim repayments proportionally later. Users may also pre-set the proportion of losses to convert to equity, though this intent is non-binding. Once the next financing round is priced, users will receive an official selection window. If total equity applications exceed the set cap, allocations will be proportional, with unconverted amounts remaining in Scheme A. Ostium emphasized that this recovery plan is voluntary, does not guarantee full recovery of all losses, and equity allocation ratios, specific mechanisms, and various thresholds are still being finalized.