Phase 4: Settlement

Position Updates

• New position states calculated

• Funding payments accrued

• Realized PnL computed

• Margin requirements updated

On-Chain or Commitment Position state updates are either:

• Written directly to chain (lower throughput, maximum transparency)

• Recorded as verifiable commitment to state root (higher throughput, still verifiable)

Funding Settlement Premium between mark price and index price is settled based on time-weighted average.