Sessions and halts
Each underlying trades in the NYSE session it is in, unless a check fails and the hub reports it halted. Halted means risk-reducing trades only, no vault exits, no auctions.
Backstops
What stands behind a payer that can't pay, in the order it is used.
- Insurance fund
- —USDG
- Seeded at launch; takes fee share and liquidation penalties.
- Bridged, not yet repaid
- —USDG
- 0 covers so far, all repaid by collateral sales.
- Socialized loss
- —USDG
- Short open interest
- —USDG
- undefined contracts, at spot.
Default waterfall
- Payer’s cashA net payer’s cash is debited into the expiry’s pool first. There is no cash borrowing.
- Insurance bridgeThe insurance fund covers the shortfall at once, rounded up to a whole USDG, so receivers aren’t kept waiting.
- PendingWhatever the fund can’t cover stays pending on the expiry; claims for that expiry wait until it clears.
- Collateral auctionThe account owes the bridge as a deficit and its stock goes to a Dutch auction: proceeds repay pending first, then the fund.
- SocializedTrue bad debt left after the collateral is gone is spread over all cash through the cash index. Any residual stays on the account as debt.
Insurance fund ledger
| When | What | Amount |
|---|
Settlement pools
One pool per weekly expiry. Payers pay in, receivers claim out, and nobody is paid with someone else's cash.
Auctions
Liquidations and deficit sales are Dutch auctions: the discount rises from 2% to 12% over 30 minutes until someone bids.
0 running
Refusals
Every trade the clearinghouse turned down, with the rule it broke and the numbers that crossed.
0 recent