INDENT LAYEROverview
A trade reaches Indent Layer already matched. Price discovery happened somewhere else and we do not touch it. What we take over is everything between the match and final settlement.
Lifecycle of an obligation
- Fill. A venue posts a matched fill, signed, referencing both participants and the asset. Nothing has moved yet.
- Novation. The trade is torn up and re-signed against Indent Layer. The buyer owes Indent Layer, and Indent Layer owes the seller. Two obligations replace one trade.
- Limit check. Each obligation is checked against the participant's position limit, which is a function of the collateral they have staked.
- Netting. Inside the settlement window, obligations in the same asset collapse against each other.
- Settlement. At the close of the window the net difference settles on chain. What netted out never becomes a transaction.
- Default, if it happens. The obligation does not disappear. It is covered by the waterfall, in order, and the counterparty on the other side is paid.
What the venue keeps and what it hands over
| Stays with the venue | Moves to Indent Layer |
|---|---|
| Price discovery, matching, the order book | Counterparty risk |
| The user relationship | Collateral management |
| Fee policy on its own side | Netting and settlement timing |
| Listing decisions | Default handling |
What this is not
- Not a venue. We do not quote, match or route.
- Not a custodian of the venue's users.
- Not a lending market. Collateral secures obligations, it is not lent out.