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)

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How Trove defines “resolution”

For prediction-style perps, Trove must define a public rule for settlement.

Recommended design:

1. Resolution source: Polymarket resolution (onchain events)

2. Final outcome value:

   • YES → p_final = 1

   • NO → p_final = 0

3. Finalization window: wait for resolution to be confirmed/finalized (dispute window / confirmation period)

4. Convergence: drive oracle/index + mark inputs toward p_final

5. Settlement trigger: when mark is sufficiently close to p_final, execute haltTrading

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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.

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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

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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)