Settlement Pool Deposit Tutorial

This tutorial relies on programming context established in Prerequisites and Setup. Settlement Pools can either be created ahead of time with specific counterparties, or created at the time of trading as part of the clearing flow.

Create a Settlement Pool

If you need to create a settlement pool with a new counterparty, or need another pool with different margin parameters, here's how you create one via the API:

from variational import MarginMode

other_company_id = "1ebc7ece-093e-42aa-8cdf-028ccb1fc68a"

margin_params = {
    "margin_mode": MarginMode.SIMPLE,
    "params": {
        "liquidation_penalty": "0.1",
        "auto_liquidation": True,
        "asset_params": {},
        "default_asset_param": {
            "futures_initial_margin": "0.02",
            "futures_maintenance_margin": "0.01",
            "futures_leverage": "1000000000",
            "option_initial_margin": "0.15",
            "option_initial_margin_min": "0.1",
            "option_maintenance_margin": "0.075",
        },
    }
}
new_pool = client.create_settlement_pool(
    pool_name="Tutorial pool",
    company_other=other_company_id,
    creator_params=margin_params,
    other_params=margin_params,
).result
print(json.dumps(new_pool, indent=2))

Output

{
  "company_id": "f58b3d2f-b5a6-488d-b8a9-dc2b1f782be8",
  "data": {
    "address": null,
    "name": "Tutorial pool",
    "created_at": "2024-04-03T17:35:23.710289Z",
    "company_creator": "f58b3d2f-b5a6-488d-b8a9-dc2b1f782be8",
    "positions": [],
    "status": "pending",
    "confirmed_by_transaction_id": null,
    "parties": [
      {
        "company": "f58b3d2f-b5a6-488d-b8a9-dc2b1f782be8",
        "created_at": "2024-04-03T17:35:23.710289Z",
        "address": "0xf39fd6e51aad88f6f4ce6ab8827279cfffb92266",
        "margin_usage": {
          "balance": "0",
          "margin_params": {
            "margin_mode": "simple",
            "params": {
              "asset_params": {},
              "auto_liquidation": true,
              "default_asset_param": {
                "futures_initial_margin": "0.02",
                "futures_leverage": "20000",
                "futures_maintenance_margin": "0.01",
                "option_initial_margin": "0.15",
                "option_initial_margin_min": "0.1",
                "option_maintenance_margin": "0.075"
              },
              "liquidation_penalty": "0.1"
            }
          },
          "margin_usage": {
            "initial_margin": "0",
            "maintenance_margin": "0"
          },
          "max_withdrawable_amount": "0"
        },
        "status": "pending",
        "confirmed_by_transaction_id": null
      },
      {
        "company": "1ebc7ece-093e-42aa-8cdf-028ccb1fc68a",
        "created_at": "2024-04-03T17:35:23.710289Z",
        "address": "0xa0ee7a142d267c1f36714e4a8f75612f20a79720",
        "margin_usage": {
          "balance": "0",
          "margin_params": {
            "margin_mode": "simple",
            "params": {
              "asset_params": {},
              "auto_liquidation": true,
              "default_asset_param": {
                "futures_initial_margin": "0.02",
                "futures_leverage": "20000",
                "futures_maintenance_margin": "0.01",
                "option_initial_margin": "0.15",
                "option_initial_margin_min": "0.1",
                "option_maintenance_margin": "0.075"
              },
              "liquidation_penalty": "0.1"
            }
          },
          "margin_usage": {
            "initial_margin": "0",
            "maintenance_margin": "0"
          },
          "max_withdrawable_amount": "0"
        },
        "status": "pending",
        "confirmed_by_transaction_id": null
      }
    ]
  },
  "pool_id": "6b2120ac-2aaf-40bc-b369-75d7e231c529"
}

Note that a new pool is always created in the pending status. Before you can deposit funds, it needs to be created on-chain and transition to open status. This will happen automatically, but can take a few seconds.

Use the helper to wait until the settlement pool becomes ready:

pool = poller.wait_for_settlement_pool(new_pool["pool_id"])

Make A Deposit

In order to deposit USDC into the pool, you need to sign and submit a ERC-2612 spending approval:

deposit_amount = 10000

permits.sign_and_submit_decimal(
    pool_address=pool['data']['address'],
    allowance=str(deposit_amount)
)

Next, you initiate a deposit transfer for the approved amount (or less):

from variational import TransferType
new_transfer = client.create_transfer(
    asset="USDC",
    qty=str(deposit_amount),
    target_pool_location=pool["pool_id"],
    # allocate these funds for trading with this counterparty
    counterparty=other_company_id,  
    transfer_type=TransferType.DEPOSIT,
).result
print(json.dumps(new_transfer, indent=2))

Output

{
  "asset": "USDC",
  "company": "f58b3d2f-b5a6-488d-b8a9-dc2b1f782be8",
  "created_at": "2024-04-03T17:40:49.491519Z",
  "id": "5e3d6f7c-a787-40c2-a4c1-b6f35eb188a1",
  "oracle_request_id": null,
  "parent_quote_id": null,
  "qty": "10000",
  "reference_instrument": null,
  "rfq_id": null,
  "status": "pending",
  "target_pool_location": "6b2120ac-2aaf-40bc-b369-75d7e231c529",
  "counterparty": "1ebc7ece-093e-42aa-8cdf-028ccb1fc68a",
  "transfer_type": "deposit"
}

Note that a transfer is created in pending status. Use the helper to wait until the deposit happens on-chain and the status changes to confirmed:

transfer = poller.wait_for_transfer(transfer['id'])

Verify

You can confirm that the deposit has been completed successfully by checking the settlement pool's balance:

pool = client.get_settlement_pools(id=pool["pool_id"]).result[0]
print(json.dumps(pool, indent=2))

Output

{
  "company_id": "f58b3d2f-b5a6-488d-b8a9-dc2b1f782be8",
  "data": {
    "address": "0x41574c5b15d67f95c7037a19cb7620c2643f2a98",
    "name": "Tutorial pool",
    "created_at": "2024-04-03T17:35:23.710289Z",
    "company_creator": "f58b3d2f-b5a6-488d-b8a9-dc2b1f782be8",
    "positions": [],
    "status": "open",
    "confirmed_by_transaction_id": "0x8681959c118ea67dff6272da137aacdce4cdb87aaf06cae380842f19b8b0ac2b",
    "parties": [
      {
        "company": "f58b3d2f-b5a6-488d-b8a9-dc2b1f782be8",
        "created_at": "2024-04-03T17:35:23.710289Z",
        "address": "0xf39fd6e51aad88f6f4ce6ab8827279cfffb92266",
        "margin_usage": {
          "balance": "10000",
          "margin_params": {
            "margin_mode": "simple",
            "params": {
              "asset_params": {},
              "auto_liquidation": true,
              "default_asset_param": {
                "futures_initial_margin": "0.02",
                "futures_leverage": "20000",
                "futures_maintenance_margin": "0.01",
                "option_initial_margin": "0.15",
                "option_initial_margin_min": "0.1",
                "option_maintenance_margin": "0.075"
              },
              "liquidation_penalty": "0.1"
            }
          },
          "margin_usage": {
            "initial_margin": "0",
            "maintenance_margin": "0"
          },
          "max_withdrawable_amount": "10000"
        },
        "status": "confirmed",
        "confirmed_by_transaction_id": "0x8681959c118ea67dff6272da137aacdce4cdb87aaf06cae380842f19b8b0ac2b"
      },
      {
        "company": "1ebc7ece-093e-42aa-8cdf-028ccb1fc68a",
        "created_at": "2024-04-03T17:35:23.710289Z",
        "address": "0xa0ee7a142d267c1f36714e4a8f75612f20a79720",
        "margin_usage": {
          "balance": "0",
          "margin_params": {
            "margin_mode": "simple",
            "params": {
              "asset_params": {},
              "auto_liquidation": true,
              "default_asset_param": {
                "futures_initial_margin": "0.02",
                "futures_leverage": "20000",
                "futures_maintenance_margin": "0.01",
                "option_initial_margin": "0.15",
                "option_initial_margin_min": "0.1",
                "option_maintenance_margin": "0.075"
              },
              "liquidation_penalty": "0.1"
            }
          },
          "margin_usage": {
            "initial_margin": "0",
            "maintenance_margin": "0"
          },
          "max_withdrawable_amount": "0"
        },
        "status": "confirmed",
        "confirmed_by_transaction_id": "0x8681959c118ea67dff6272da137aacdce4cdb87aaf06cae380842f19b8b0ac2b"
      }
    ]
  },
  "pool_id": "6b2120ac-2aaf-40bc-b369-75d7e231c529"
}