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Settlement

Changer’s Settlement Method

Settlement Principle & Structure

Changer settles the balance once a day (7AM UTC). The users may have negative balance of certain assetbefore the next settlement within their credit limit.
At the settlement time, Changer automatically sell the user's assets with positive balance to eliminate negative balances.
For example, let’s say you have -3 BTC and 200,000 USDT in your balance at the settlement time (7AM UTC or 4PM KST). Changer will automatically purchase 3 BTC using your USDT deposit to make your negative BTC balance into zero.
If 1 BTC costs 50,000 USDT, 3 BTC will be 150,000 USDT. Then, Changer will sell 150,000 USDT from your balance to buy 3 BTC to make -3 BTC balance into 0 BTC. After the settlement time, the balance changes as follows:
Before Settlement (before 7AM UTC)
After Settlement (after 7AM UTC)
200,000 USDT
50,000 USDT
-3 BTC
0 BTC
At settlement time, Changer makes all of the user’s negative balance into zero (0). We sell positive balance assets, from the asset that has the highest USDT value, to buy assets whose balance is negative.
If you do not want automatic clearance of the positive balanced assets, you should deposit 3 BTC in advance of the settlement time to make your minus balance into zero (0).
Clearing using other assets with positive balances would not occur if you deposit assets before 7AM UTC to make negative balance into zero (0).

Institution-Optimized Settlement Method

Changer is a platform designed for institutions and professional traders who deals with thousands and millions of trade a day. Thousands of trades may occur if someone uses a programmed trader. How annoying would it be if the settlement was made after every trade?
Let’s assume you buy the same quantity of something 1,000 times a day and sell 1,001 times. In the end, you only need to settle one trade of the difference. You don’t have to give and receive 2,001 times.
However, ordinary cryptocurrency exchanges make settlements in real-time for the same trade. Basically, 2,001 times of selling and buying occur. The advantage of real-time settlement is that you can withdraw coins whenever you want.
But institutional traders, who do not need to withdraw frequently, prefer settlement after pre-trade. That’s why Changer settles in the way that companies prefer.
You can find similar examples in the stock market. When you sell stocks, the sale price usually comes in after 3 working days. But you can also purchase Stock B as soon as you sell Stock A. This is possible because the Central Clearing House exists. All trade value of purchasing and selling stocks at exchanges goes through the Central Clearing House.
If I sell the Apple stock and use the payment to buy the Tesla stock, the Central Clearing House gives me the sale price of the Apple stock and to the person who sold the Tesla stock on my behalf. This is possible because the trade values of all stocks are paid through the Central Clearing House.
Changer takes the Central Clearing House’s role in the institutional digital asset market. Since all trade values go through Changer, we allow users to trade today with the amount that will be settled the next day even if settlement happens the next day. It’s similar to the stock market that allows you to trade today based on the amount that will come in three days.