Settlement

Allocation doesn't transfer anything right away. It marks the position as allocated to you and lets you choose how to settle¹:

• Keep the NFT. You get the NFT; the depositor gets their backing back (minus a small protocol cut).
• Keep and relist in one transaction. The original depositor receives the same net backing return, while the NFT stays in protocol custody and becomes a new listing funded by your fresh backing. The new listing follows the same eligibility and request-ordering rules as any deposit.
• Accept the depositor bid. You sell the NFT back to its original depositor for the pre-funded standing bid: seller is you, buyer is the depositor, and the price is most of the backing, after a settlement discount (you receive 90% under the current mainnet configuration). The NFT returns to the depositor, and the retained settlement discount is the remaining 10%.
• Accept the bid, settled as FWA. Same sale and same amount, but the ETH buys FWA from the pool and sends it to you, a one-click exit into the reward token.

You can never keep both the NFT and the ETH; accepting the bid requires transferring the NFT to the depositor. You get an exclusive window to choose. Miss it, and the depositor can resolve it; miss a longer window, and anyone can finalize the default outcome (NFT to you, backing to the depositor), so nothing ever locks up. NFT delivery is defensive: a broken or malicious NFT collection can never block a settlement. The ETH still settles and the NFT is recorded as separately claimable later.