Delisting Process

Reduce only mode

The market immediately enters “reduce only mode” once an expiry date is set.

• All new orders are forced to have reduce only flag

• All current orders that will increase risk will get cancelled on fill attempts

• Funding rate updates continue — funding still accrues throughout reduce-only mode (a market’s funding updates while its status is Active or ReduceOnly), so positions keep paying/receiving funding right up to expiry

• Users cannot settle unrealized P&L prior to expiry

Settlement price lock in

After the expiry date, the market can lock in a settlement price.

• Must call the instruction: settle_expired_market
  • The target price is the amm’s calculated 5-min oracle twap but is altered such that it allows for full solvency across all users

Expired Position Settlement

After the expiry date + optional time buffer, users can settle their “expired positions” at the settlement price.

• The optional time buffer is the settlement duration, which acts as a buffer for liquidations

• Any necessary insurance fund draws and/or social loss can occur

• At position closure, the taker fee is applied (so as to encourage close during reduce only mode)

PnL Pool Settlement

Once the number of users in the market reaches zero, the remaining balance PnL Pool can be settled into the quote asset’s Revenue Pool

Reduce only mode

The market immediately enters “reduce only mode” once an expiry date is set

• This blocks new borrows and any deposit that does not pay down an existing borrow (there is no spot order book, so there are no spot “buys” to block)

Force close mode (coming soon)

After the expiry date, the market is set into “force close mode”

• Deposits are sent back to the user’s associated token address up to an amount that still satisfies their margin requirement

• Opens the possibility for liquidation of borrows and/or swaps of deposits to other accepted collateral