🤝Settlement

Once the tokens are released by the project, the settlement period starts and lasts for 24 hours.

For Sellers:

1. The Seller is required to settle tokens before the settlement deadline expires (24 hours from token release).

2. Once settled, the Seller will automatically receive both their initial collateral and the Buyer's deposit (within the same transaction).

Be aware that once your settlement period is over and you have not completed the settlement (through signing the transaction), the buyer could claim compensation from your collateral from the smart contract.

You will risk losing your funds if you fail to settle in time.

For Buyers:

1. Once the Seller has settled , the Buyer can visit their dashboard and claim the project tokens, if the proof-of-collateral NFT is held in the same wallet.

2. If the order status is Forfeit , it means the Seller has defaulted. In this case, all of the Seller's deposit will be proportionally distributed to all Buyers, alongside a refund of the Buyer's original deposit.

Example 1: a seller submits an order worth $1M order for 1,000,000 Points. The order is partially filled, with only 1 buyer filling $10 for 10 Points.

In this case, the sell order is 99.9% unfilled, 0.01% filled.

Scenario	Seller	Buyer
1	Settles the $10 order and retrieves the collateral and $10 from the buyer	Receive 10 Points worth of project tokens
2	Defaults on this order because the token price 100x in open market post-TGE. The decides to forfeit their collateral deposited and lose $1M as the open market value for this position outweighs the downside of losing the collateral held in this position.	The Seller's entire collateral is distributed proportionately between all Buyers. Since there is no other Buyer in this offer, this one Buyer is eligible for 100% of the collateral. The Buyer receives $1,000,000 of collateral from the Seller, demonstrating the disproportionate potential upside available for Buyers.

Example 2: a seller defaults on a $1M order for 1,000,000 Points with 2 buyers filling (i) $10 for 10 Points and (ii) $5 for 5 points.

Scenario	Seller	10 Points Buyer	5 Points Buyer
1	Settles the $10 order and $5 and retrieve the collateral and $15 from the buyers	Receive 10 Points worth of project tokens	Receive 5 Points worth of project tokens
2	Defaults on this order because the token price 100x in open market post-TGE. The decides to forfeit their collateral deposited and lose $1M as the open market value for this position outweighs the downside of losing the collateral held in this position.	This buyer is eligible for 10/15 of $1M collateral = $666,667	This buyer is eligible for 5/15 of $1M collateral = $333,333