Submitted by 0Kage, also found by peakbolt, pep7siup, ABA, 0xnev, and zzebra83
https://github.com/code-423n4/2023-08-dopex/blob/eb4d4a201b3a75dd4bddc74a34e9c42c71d0d12f/contracts/perp-vault/PerpetualAtlanticVault.sol#L333 
https://github.com/code-423n4/2023-08-dopex/blob/eb4d4a201b3a75dd4bddc74a34e9c42c71d0d12f/contracts/core/RdpxV2Core.sol#L800 
https://github.com/code-423n4/2023-08-dopex/blob/eb4d4a201b3a75dd4bddc74a34e9c42c71d0d12f/contracts/perp-vault/PerpetualAtlanticVault.sol#L376
In the current implementation of PerpetualAtlanticVault::settle, the only way an optionId can be burnt is when the option is in-the-money. Note that at the time of bonding, a put option that is 25% out of the money is purchased by user. If the RDPX-ETH price is above this price, the option is rolled over to the next epoch and a new premium is again calculated inside the PerpetualAtlanticVault::calculateFunding and added to the totalFundingForEpoch.
Effectively, as long as the option is out of money, the funding cost continues to be deducted from core contract and passed to Atlantic vault LPs.  There is no check if the underlying bond for which this put option is minted is redeemed or not.
Not completely sure if this is bug or feature of Perpetual Atlantic Puts but since the utility of these puts is to protect downside price movements of RDPX during bonding, such options should be retired once the underlying bond is redeemed by user. Paying out a premium on a perennial basis to Atlantic LPs does not make sense.
There are 2 implications:
Consider settling optionIds that no longer have an underlying bonding. Put options for such bonds should expire and free up locked collateral in Atlantic Vaults.
psytama (Dopex) confirmed
