How settlement works¶

Once a day, one price per market¶

All markets settle at the same time every day: 12:00 UTC. At that moment each market reads its own official price once, and every protection expiring that day is settled at the same price.

Your expiry = the first settlement time after 7 full days from purchase. For example, buy UNI protection on Monday at 10:00 UTC: 7 full days end next Monday at 10:00, and the first settlement time after that is next Monday 12:00 UTC, which is your expiry.

Settlement rule¶

Official price ≤ floor → delivery: the protected asset is sold at the floor for USDG
Official price > floor → release: the asset is returned as it is

Only the official price at the settlement time counts. How the price moved during the week, and whether it touched the floor, has no effect. A price exactly at the floor counts as delivery.

Where the money goes on delivery¶

Protection buyer: hands over the protected asset and receives protected amount × floor in USDG.
Money Pool: pays that USDG and receives the asset, which is credited to each depositor by share.

That USDG was reserved by the pool the moment the protection was bought, so delivery is always funded.

When the official price is unavailable¶

No fresh official price at the settlement time: the batch is deferred to the next settlement time at which a price is available. All expiring protections stay in force and premium keeps releasing to the Money Pool.
Deferred beyond the allowed limit (see Markets and parameters), or the chain halts so that settlement is impossible: the batch is voided. Protected assets are returned to buyers, the part of the premium not yet released is refunded to buyers, the released part stays with depositors, and the reserved USDG is freed back to the pool.

Early exit¶

A buyer may exit at any time before expiry. The asset is returned immediately, the reserved USDG is freed immediately, the premium is not refunded, and the part not yet released goes to the Money Pool at once.

Timeline example¶

Time	Event
Monday 10:00 UTC	Buy UNI protection at price 10, floor 9, expiry set to next Monday 12:00 UTC
Monday to next Monday	Premium releases to the Money Pool second by second; buyer may exit any time
Next Monday 12:00 UTC	Official price is read. 8 → delivery, buyer receives USDG; 11 → release, buyer gets UNI back
Afterwards	Buyer claims; with auto-renew on, a new protection is bought at once