Acts as intramembrane protease (Probable). In larvae, required for the complete shedding of the cuticle during molting, possibly by regulating cholesterol uptake via lrp-1 (PubMed:15469912). Involved in embryonic and larval development (PubMed:15469912, PubMed:29137240). The PAL motif is required for normal active site conformation. RNAi-mediated knockdown results in late stage embryonic and larval lethality, slow growth and pharyngeal pumping, uncoordinated movement, reduced brood size, middle body constriction, and muscle detachment (PubMed:15469912, PubMed:29137240). RNAi-mediated knockdown in L1 larvae causes incomplete cuticle shedding during molting (PubMed:15469912). Belongs to the peptidase A22B family.