Settlement & Resolution
HIP-3 introduces an explicit ability for deployers to halt/settle a mark
This is done with the haltTrading action:
cancels open orders
settles positions to the current mark price
can later resume trading (recycle the asset)
How Trove defines “resolution”
For prediction-style perps, Trove must define a public rule for settlement.
Recommended design:
Resolution source: Polymarket resolution (onchain events)
Final outcome value:
YES →
p_final = 1NO →
p_final = 0
Finalization window: wait for resolution to be confirmed/finalized (dispute window / confirmation period)
Convergence: drive oracle/index + mark inputs toward
p_finalSettlement trigger: when mark is sufficiently close to
p_final, executehaltTrading
Why a finalization window matters
Even if the final outcome is known, market prices may move fast.
HIP-3 mark updates are rate-limited (mark moves are clamped), so Trove may need a short window to converge mark toward the final value before settlement.
A transparent “finalization window” prevents confusion and keeps settlement fair.
Emergency halts
Trove should be prepared to halt trading if:
the Polymarket feed is unavailable beyond a threshold
abnormal data suggests manipulation or corruption
there is uncertainty about the event’s resolution
When halted:
oracle updates should continue (if required) using the best available fallback
trading remains paused until safety conditions are met
Post-settlement
Once halted and positions are settled:
Trove can leave the asset halted permanently, or
recycle the asset (e.g., for a new dated contract)
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