Trading

Settlement

Every close settles against the Vault. The position panel shows, before you close, the net amount a winning position would pay or the TLP a losing position would return.

Winning

Profit is settled in three steps.

Step 1Price bufferThe closing price moves against you by 0.2 basis points (0.002%) of the entry price. A close within that band earns zero.

Step 2Asymmetric deductionYou retain part of the remaining profit, at most 90%. Smaller price moves retain a smaller share. Parameters are set per market; the formula is in Reference.

Step 3Protocol feeCharged on what remains; see Fees.

Example: $100 margin, 200× leverage, BTC long, price up 0.5%. Profit is $100.00 before settlement, $99.60 after the price buffer, $86.36 after the asymmetric deduction, and $84.63 after the protocol fee.

Example · $100 margin, 200× leverage, BTC long, price up 0.5%

Before settlement

$100.00After the price buffer

$99.60After the asymmetric deduction

$86.36After the protocol fee

$84.63

This example uses the BTC parameters.

If Vault liquidity is sufficient, the contract pays immediately. Otherwise the unpaid part joins the settlement queue.

Losing

The loss, net of the protocol fee, is credited to the Vault. The rest of your margin is returned. In the same transaction you receive TLP worth the current rebate rate times the credited amount; see Loss rebates. A loss never exceeds your margin.

Example: 1,000 USDT margin at 1×, a 100 USDT loss, queue empty. 98 USDT is credited to the Vault, 900 USDT is returned to you, and at a 1% rebate rate you receive TLP worth 0.98 USDT.

Example · 1,000 USDT margin at 1×, a 100 USDT loss, queue empty

100 USDTloss

− 2 USDTprotocol fee

98 USDTcredited to the Vault

× 1%rebate rate

0.98 USDTin TLP, to you

900 USDT of margin is returned to you; the other 97.02 USDT stays with existing TLP holders.

Settlement queue

When liquidity cannot cover a profit, the contract returns your margin, pays what it can, and records the rest as a claim in a first-in, first-out queue. New losses and new deposits replenish the queue. The admin address calls harvest to settle claims in order; no claim can skip ahead. While the queue is not empty, the Vault balance is zero and TLP redemptions wait: winners are paid before shareholders.

1 · ShortfallMargin returned; the unpaid part becomes a claim

2 · ReplenishNew losses and new deposits refill the queue

3 · harvestThe admin address settles claims in order

4 · PaidFirst in, first out; no claim skips ahead

Queued profit cannot be withdrawn, but it can be used as margin for a new trade.

New trade outcome	What happens to the claim used as margin
Win	the margin and the new profit return together to the back of the queue.
Loss	the lost portion is canceled and receives a TLP rebate.
Liquidation	the whole claim used for the position is canceled.

Trading · 05 / 21

Settlement

Every close settles against the Vault. The position panel shows, before you close, the net amount a winning position would pay or the TLP a losing position would return.

Winning

Profit is settled in three steps.

Step 1Price bufferThe closing price moves against you by 0.2 basis points (0.002%) of the entry price. A close within that band earns zero.

Step 2Asymmetric deductionYou retain part of the remaining profit, at most 90%. Smaller price moves retain a smaller share. Parameters are set per market; the formula is in Reference.

Step 3Protocol feeCharged on what remains; see Fees.

Example · $100 margin, 200× leverage, BTC long, price up 0.5%

Before settlement$100.00

After the price buffer$99.60

After the asymmetric deduction$86.36

After the protocol fee$84.63