# Dynamic Index Operations ### **Dynamic Index Operations** PLP is a composite index comprising a basket of tokens that can be minted by depositing any of the constituent assets, and conversely, PLP tokens can be redeemed to withdraw any of the underlying assets. The price for minting and redeeming PLP is dynamically calculated based on the following formula: $$ \boldsymbol{PLP=\frac{PLP\ Total\ Value\ Locked \ + \ PnL \ from\ Exercised\ Options}{Total \ PLP\ Supply}} $$ This calculation ensures that the PLP token accurately reflects the aggregate value of the underlying assets, including any realized gains or losses from selling options to traders. When provided, liquidity is automatically locked for a minimum period of 7 days. In exchange, Liquidity Providers receive PLP tokens reflecting their position. During this locking duration, Liquidity Providers start to earn their proportional share of the protocol's premiums collected and are exposed to options exercise. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.polarity.finance/intro/liquid-options-facility-lof/dynamic-index-operations.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.