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💰 Asset Settlement
BuildKey V2 is different from BuildKey 1.0, where the assets are provided by the project and Devs. Instead, BuildKey V2 as a decentrazlied and trustless protocol, the trading and asset settlement take place between Long traders and Short traders.
Update notice: To better protect users during market volatility, we introduce Aspecta Pre-market Insurance Fund.
Update notice: In responding to community feedback, the settlement window has been adjusted to 4 hours instead of 2 hours for projects launched after May 1, 2026. Previous projects remain unchanged.
1. Short Position Settlement: Deliver Tokens, Receive BNB/USDT
When to Deliver the Tokens
There is a 4-hour window after the project’s TGE for Short traders to deliver the corresponding tokens. After the delivery, Short traders can unlock and receive their profit.
How to Deliver the Tokens
The delivery process is standard and simple. Once you have the corresponding tokens in your connected wallet, you can complete the delivery by clicking the "Settle" button on the BuildKey page and receive BNB/USDT immediately.
Failure to Deliver the Tokens
Failure to deliver tokens in time will result in your locked BNB/USDT remaining in the pool allocated as compensation for long traders.
Open New Position During Settlement
During the settlement stage, traders can still open new short positions. At this stage, short positions can only be closed by delivering tokens to long traders, rather than by closing positions on AMM.
2. Long Position Settlement: Convert Keys to Tokens
Starting 4 hours after TGE, long traders can claim their share of assets from the pool, proportional to their long key balance.
Given that Short position holders may deliver tokens or provide BNB/USDT as compensation, long traders may receive either one or both. To be specific, all long traders will share the following based on their key holdings:
- tokens from all settled short positions, and
- BNB/USDT from all unsettled short positions, and
- all remaining BNB/USDT liquidity in the pool.
Please note: The number of settled/unsettled short positions will affect the received assets for long traders. Please make sure you understand the asset settlement calculation rules before participation.
✅ Post-TGE Flexibility: Protect Long Traders
To protect long traders and provide more flexibility, BuildKey V2 introduces a Post-TGE Flexibility mechanism: depending on the short settlement status and TGE token price, long traders will have the flexibility to either sell/close their existing positions on AMM post TGE (within 4 hours), or settle for assets (after 4 hours). Traders cannot open new long positions during the settlement stage.
3. Cross-Chain Settlement
When settling tokens on BSC, the above 4-hour settlement window will apply.
Token settlement on other EVM chains is also supported. Traders can trade BuildKey on BSC but receive/deliver tokens on other EVM chains. On non-BSC EVM chains, the settlement window for long and short traders may differ (e.g., 4.5 hours) to compensate for cross-chain message delays.
For non-EVM chains, a trader's settle address will be different from their trade address. For the convenience of traders, the settlement will be conducted in USDT on BSC instead of native tokens on the non-EVM chain. The settlement USDT amount per key will be calculated based on the TWAP token price and the short settlement status. The settlement window for short and long traders may also be adjusted, respectively.
Please read the settlement details on each asset page.
4. Aspecta Pre-market Insurance Fund
In BuildKey V2 settlement phase, all long users will share the final settled pool (the settled tokens, the collateral of unsettled users, and the existing USDT liquidity in the pool). In most markets, long users will win profits through the sharing process. However, in few markets that experienced sharp price volatility, short users' collateral may be insufficient to compensate all long users. Even though most long users may still be winning profits, a few long users who bought in late at a high price may end up losing money.
Aspecta Pre-market Insurance Fund is designed to protect users during such price volatility. The fund comes from the platform's funds and revenue. For long users who shall be winning on the pre-market but get significant losses during settlement, the fund will automatically operate and send insurance to users.
The insurance is evaluated by:
- a. the TWAP price on the token market post TGE.
- b. the TWAP price on the pre-market before TGE.
- c. your settled price - cost price on the pre-market.
For markets which got b < a (you were supposed to win) and users who got c < 0 (you got losses), the insurance will apply. The exact insurance amount will be calculated to fill your settlement loss and will be different for each qualified user.
Please note: The insurance fund will not cover your pre-market trading losses.
Please note: The insurance fund may not cover your losses in all trading stages and may not apply to all long users. Please be aware of the risks if you choose to complete settlement post-TGE rather than close positions on pre-market. The insurance fund is in the experimental phase. The rules may change and may not apply to all projects. Please stay tuned.
Disclaimer
1. BuildKey V2 is a decentralized protocol and a blockchain smart contract. The trading and asset settlement take place between long traders and short traders through the smart contract.
2. The amount of settled assets post-TGE depends on the number of short traders and their choice of asset settlement. The protocol does not guarantee or endorse full settlement of traders. Thus, the tokens received by long traders may be fewer than their long position holdings multiplied by the standard settlement ratio. Instead, long traders will also receive BNB/USDT from unsettled short traders as compensation. The protocol also provides flexibility for long traders to sell positions depending on the short settlement status and TGE token price.
3. You are responsible for ensuring you understand and accept the rules and risks associated with participating in BuildKey V2 events, including but not limited to market volatility, dynamic pricing, project-specific risks, and asset settlement calculations. Participation does not guarantee any profit, return, or liquidity. Users should conduct their own due diligence before committing.