Settlement
Settlement Process for Profit Swap Contracts on Vanilla Finance
After purchasing a Profit Swap contract, users can either:
Wait for Automatic Settlement: The contract will automatically settle when it expires.
Manually Settle Before Expiry: Users can choose to settle early at a time they deem favorable.
Settlement Calculation
The settlement amount is calculated based on the entry price, settlement price, trade direction, and quantity using the following formula:
Settlement Amount = (Settlement Price - Entry Price) × Direction × Quantity
Where:
Direction:
Call = 1
Put = -1
Settlement Fee: Currently waived for a limited time, meaning the entire settlement amount translates into user profits.
Example:
If a user buys a call contract for 10 units of an asset with an entry price of $1,000 and a settlement price of $1,050:
Settlement Amount = ($1,050 - $1,000) × 1 × 10 = $500
After deducting the settlement fee (if applicable), the remaining amount is credited to the user's account as the profit from the trade.
Key Notes:
Settlement fees are subject to change, and any updates will be announced on the platform.
Users should monitor market conditions to decide between early manual settlement or automatic expiration.
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