💰 Asset Settlement

Aspecta Pre-Market V3 differs from Pre-Market V2 in two ways:

• Consecutive Settlement
• Funding Fee & Settlement Rate Mechanism

1. Consecutive Settlement

1.1 When to Settle

Anytime during the "Trade + Settle" stage and before the "Final Settlement" stage.

1.2 How to Settle

1.2.1 Short Settlement

For short users, once you have the corresponding tokens in your connected wallet, you can complete the delivery by clicking the "Settle" button on the project page and receive USDT immediately.

Consecutive settlement windows give short users flexibility to complete their settlements. However, short users may incur funding fees when long settlement requests cannot be fully filled within the current settlement window.

1.2.2 Long Settlement

For long users, you can click the "Settle" button to start settlement.

• The settlement process may take a few hours (e.g., 4 hours, depending on project) to complete. You can cancel the process before it completes.
• During this process, short settlement orders will automatically match with your orders and provide you tokens.
• When the process finished, you can claim tokens. If there are not enough short users delivering tokens at the current settlement window, the unsettled keys will be refunded and you will receive funding fees from unsettled short users as compensation.

1.3 Funding Fee

Funding fee is designed to encourage settlement. In each settlement window, if the current settled short positions < the current long settlement requests, all unsettled short positions will pay a funding fee to all unsettled long positions as compensation.

The funding fee paid from unsettled short positions is calculated by short collateral amount * funding rate. The total funding fee is shared by all unsettled long positions by their position cost.

1.4 Settlement Rate

The settlement rate per key defines how many tokens should be delivered from short positions to long positions. It will be updated periodically and slowly based on the current long/short balance and liquidation status.

For example, if the increase of long positions is much more than the increase of short positions in one settlement window, the settlement rate may decrease in the next window to encourage more short positions and balance long/short ratio.

The update of settlement rate per window has a fixed floor/max threshold.

1.5 Continue Trading During Consecutive Settlement

During the "Trade + Settle" stage, besides settlement, traders can also open or close positions on the market for profits.

2. Final Settlement

The "Final Settlement Stage" is the final deadline for short users to complete their settlement commitment.

2.1 When to Settle

Short users must complete settlement or close positions before the Final Settlement Stage.

Long users can settle at anytime in the Final Settlement Stage.

2.2 How to Settle

2.2.1 Short Settlement

Short users must complete settlement or close positions before the Final Settlement Stage.

Failure to close positions or delivering tokens before the Final Settlement Stage will result in all your collateral allocated to long users as compensation.

2.2.2 Long Settlement

For long users, you can claim assets when the Final Settlement Stage begins. The claim will complete immediately.

Given that Short position holders may deliver tokens or provide USDT as compensation, long traders may receive either one or both. To be specific, all long traders will share the following:

1. tokens from all settled short positions (based on holding keys)
2. USDT from all unsettled short positions (based on position cost)
3. USDT liquidity in the pool (based on position cost)

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.

2.3 Funding Fee

In the last settlement window before the Final Settlement Stage, the funding rate is set as "100%".

This means short users must deliver tokens to close their positions before the Final Settlement stage, otherwise their collaterals will be allocated to long users as compensation.

2.4 Trading During Final Settlement

Users cannot open or close positions in the Final Settlement Stage.

Please note: After the Final Settlement Stage, unclaimed limited orders will expire and you may not receive Keys or USDT from expired orders. Please make sure you claim or cancel your limited orders before the Final Settlement Stage.

3. Cross-Chain Settlement

The default settlement rules and windows apply on BSC.

Token settlement on other EVM chains is also supported. Traders can trade Pre-Market 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.

Disclaimer

1. Aspecta Pre-Market 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 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 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 Aspecta Pre-Market 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.