Global Settlement

Global settlement is a process that can be used as a last resort to cryptographically guarantee a target price to DurovUSD holders.

It pauses the platform and gradually shuts down the platform to prevent errors from occurring, ensuring that all users (both DurovUSD holders and collateralized debt obligation users) receive the net value of the assets they own.

The process is fully decentralized, and governance token holders control access to it, ensuring that it will only be triggered in the event of serious emergencies.

Examples of serious emergencies: are prolonged market irrationality, hacks or security breaches, and system upgrades.

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● Step 1: Activating global calculation

The global settlement function is activated if a sufficient number of individuals designated by platform management as the global settlement executor believe that the system is experiencing a serious attack, or if global settlement is scheduled as part of a technical upgrade.

When global settlement is triggered, collateral creation and handling stop, and the quote stream is frozen at a fixed value, which is then used to process proportional claims for all users.

● Step 2: Process Global Settlement Requirements

After the global settlement is activated, it takes some time for the custodians to process the pro rata claims of all holders of DurovUSD and collateralized debt obligations based on fixed quote values.

After the processing is complete, all holders of DurovUSD and collateralized debt obligations will be able to collect a fixed amount in TON cryptocurrency according to the volume of DurovUSD and collateralized debt obligations.

● Step 3: Holders of usdTON and collateralized debt obligations collect collateral following the amount of usdTON and collateralized debt obligations

Each holder of DurovUSD and collateralized debt obligations can use the platform's foreclosure feature to exchange DurovUSD and collateralized debt obligations directly for a fixed amount of ETH that corresponds to the calculated value of their CDP assets based on the target price of DurovUSD.

If during global settlement activation the target price of DurovUSD is 1 USD, the ETH/USD exchange rate is 200 and the user has 1000 DurovUSD coins, after processing the user will receive exactly 5 ETH units from the platform. The deadline for submitting final claims does not have any time limit.