Settlement Pools

A settlement pool is a one-to-many relationship created between the pool creator and its counterparties, and contains:

1. Open derivatives positions

2. USDC collateral from counterparties

3. Rules governing margin requirements and liquidation

Example: bilateral pool between Alice <> Bob.

Example: multilateral pool between Bank <> Bank clients. In this case all trades are done between Bank and [Specific Bank Client]. All the clients' funds are commingled in one pool. The bank could've also decided to make many bilateral pools instead of one multilateral pool as an alternative risk model.

Example: On Omni, each user has his own bilateral pool created between User <> OLP.

All settlement pools are completely isolated from each other. Positions that exist in one settlement pool cannot be transferred or netted with positions in another settlement pool. Similarly, uninvolved parties do not have access to funds in settlement pools they are not a part of.

Margin requirements and liquidation rules may be completely different on a pool to pool basis.

Deposits and Withdrawals

A user may freely deposit more USDC into the pool. A user may withdraw the unused balance from the pool, up to the maintenance margin requirement.