One implication of this model is the resulting price can be less than the intrinsic (exercise) value of the option when the C-level is exceedingly low. As such, we have implemented a Minimum Return model for the safety of LPs, such that the final price of an option offered by a pool will always be at least as high as the intrinsic value of the option, plus a minimum annualized return (even if the standard model produces a lower price).