Exceptions
Missing Price Data
In case the price data is not available at the time of cycle settlement, we scrap two cycles which get affected by this price point, the cycle ending at this price and the next cycle starting at this price.
Cycle Scraping
Scraped cycles get settled at the break even price, which means there is no profit or loss for either the Long OPerps holders or the Short OPerps holders in that cycle.
Sell Orders
All sell orders get executed normally during this settlement and users can withdraw their funds as usual.
Buy Orders
All buy orders are also processed normally as the upcoming cycle is also going to be settled at the break even price so the user's funds will not be affected in the scraped cycles. In case the user doesn't wish to participate in further cycles (happening after the 2 scraped cycles), they are free to place the sell orders and exit the market without any change in their funds. Following examples will further clarify this point.
Example Scenarios
Let's assume that the ongoing cycle was supposed to be settled at 15:05 but the price data is not available, we propose to scrap 15:00 - 15:05 and 15:05 - 15:10 cycles. We will refer to these intervals as Interval 1 and Interval 2 respectively. 15:10 - 15:15 cycle will function normally, we will call this Interval 3.
Alice expects the market to go up during Interval 2, so she places a buy order for Long Call OPerps during Interval 1. This order gets processed at 15:05 and she now holds Long Call OPerps tokens.
During interval 2, Alice can decide whether she wants to continue having exposure for the Interval 3 or not. If yes, she doesn't need to take any action, the Long Call OPerps tokens automatically get rolled over to the next cycle. If not, she can place the sell order anytime during interval 2 which will get processed at 15:10 at the break even price. No profit, no loss.
Settlements Stuck
In case of settlements being stuck for any reason, all the pending cycles will be scraped. If a cycle is not settled within 30 seconds* of its end time, the cycle is eligible for scraping. The users will have the option to cancel their pending buy orders in this case.
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