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