If a party fails to meet margin requirements, the smart contract:

1️⃣ Terminates the agreement
2️⃣ Transfers deposited assets to the compliant party
3️⃣ Applies penalties to the defaulting party

This liquidation process is executed automatically on-chain 🤖

Illya Gerasymchuk 2024-07-01 22:00

Smart contract on the blockchain tracks:

1️⃣ Deposited amounts for each party
2️⃣ Required deposits at each checkpoint
3️⃣ Maturity date

It uses this data to automatically enforce the increasing margin schedule 🔐