In summary, blockchain-based Tokenized Liquid Futures: - Eliminate intermediaries - Increase transparency - Enhance liquidity - Automate risk management - Provide flexible capital deployment Thus enabling a disruptive #DeFi use-case over its #TradFi equivalent
The smart contract automates risk management on-chain by: 1๏ธโฃ Enforcing margin requirements 2๏ธโฃ Handling liquidations 3๏ธโฃ Ensuring contract settlement Removing the need for trusted third parties and ensuring transparency ๐ก๏ธ