Changer Docs

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 7AM UTC (4PM KST) settlement time. Changer will automatically purchase 3 BTC using the 200,000 USDT you have to make your minus balance into a zero.
If the price of 1 BTC is 50,000 USDT, the price of 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
At settlement time, Changer makes all of the customer’s minus balance into zero (0). We sell plus balance assets with high USDT exchange value sequentially to buy minus balance assets.
If you do not want automatic covering of the plus balance at the settlement time, you can deposit 3 BTC in advance of the settlement time to make your minus balance into zero (0).
Covering using other assets of plus balances will not occur if you deposit minus balance assets from other exchanges or through the wallet every day before 7AM UTC and make your account’s minus balance disappear.

Institution-Optimized Settlement Method

Changer is a platform designed for institutions and professional traders. Those people trade thousands and millions a day. Thousands of trades occur a day when using a program to trade. How annoying would it be if the settlement was made after every trade?
Let’s assume you buy the same quantity 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, the current 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 need them.
But institutional traders who do not need to withdraw one by one for frequent individual trades 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 buy Stock B as soon as you sell Stock A. This is possible because the Central Clearing House exists. All trade value of buying 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 you 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.
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Changer’s Settlement Method
Settlement Principle & Structure
Institution-Optimized Settlement Method