#Settlement

Settlement is the process by which orders are executed and positions are updated. Exolane uses oracle-based settlement for fair execution.

#What is Settlement?

Settlement is when your order is executed and your position is created or modified:

Order Submitted → Pending → Oracle Update → Settlement → Position Active

#Settlement Flow

#Step-by-Step:

1. USER SUBMITS ORDER
   └── Transaction sent to Arbitrum
   
2. ORDER ENTERS PENDING STATE
   └── Waiting for oracle price
   
3. ORACLE UPDATES
   └── Keeper submits new Pyth price
   
4. ORDER SETTLES
   └── Executed at oracle price
   
5. POSITION UPDATED
   └── Balances, PnL, margin recalculated

#Timeline:

#Why Oracle-Based Settlement?

#The Problem with Instant Execution:

Traditional Exchange:
  12:00:00.000 - You see price: $100,000
  12:00:00.010 - You submit buy
  12:00:00.005 - MEV bot already bought (front-run!)
  12:00:00.015 - You get worse price: $100,100

#Exolane's Solution:

Exolane:
  12:00:00.000 - You see price: $100,000
  12:00:00.010 - You submit buy (enters pending)
  12:00:02.000 - Oracle updates: $100,050
  12:00:02.001 - All pending orders settle at $100,050

Everyone gets the same price. No front-running.

#Benefits of Oracle Settlement

#Settlement Price

#What Determines Your Price?

Your order executes at the next oracle price after your order enters pending state.

#You Cannot Control:

• The exact settlement price
• The timing of oracle updates
• Priority over other orders

#You Can Control:

• Whether to use market or limit orders
• Your limit price (for limit orders)
• When you submit the order

#Pending State

While pending, your order:

• Is committed — Cannot be front-run
• Awaits oracle — Needs fresh price
• Can be cancelled — Until settlement

#Pending Limits:

If limits are reached, new orders are blocked until existing ones settle.

#Settlement Timing

#Oracle Granularity

Oracle updates have a minimum interval (granularity):

If granularity = 10 seconds:
  Order at 12:00:05 → Settles at 12:00:10
  Order at 12:00:15 → Settles at 12:00:20

#Current Settings:

#Order Types and Settlement

#Market Orders

Settle at: Next oracle price
Fill: Yes, if margin is sufficient
Price slippage: Possible

#Limit Orders

Settle at: Oracle price (if limit condition met)
Fill: Only if price reached
Price slippage: No 

#Stop-Loss / Take-Profit

Trigger: When oracle reaches trigger price
Settle at: Oracle price at trigger
Execution: As market order from trigger

#What Can Delay Settlement?

#Stale Oracle

If oracle hasn't updated in 40 seconds:

• Settlement pauses
• Orders remain pending
• Resume when fresh price arrives

#Network Congestion

If Arbitrum is congested:

• Transactions take longer
• Keepers may delay price submission
• Eventually settles when included

#Pending Limit Hit

If too many pending orders:

• New orders rejected
• Existing orders settle normally
• Try again after settlement

#After Settlement

Once settled, your order is final:

• Position is created/modified
• PnL is calculated
• Margin is allocated
• Cannot be reversed

#Checking Settlement Status

#Order States:

#In the UI:

• Pending orders show in "Orders" tab
• Settled positions show in "Positions" tab
• History shows all past orders

#Settlement Fees

#Edge Cases

#Price Moves While Pending

You submit at $100,000
Oracle updates to $105,000
You settle at $105,000 (not $100,000)

This is expected behavior. Use limit orders for price control.

#Multiple Orders Same Settlement

If you have multiple pending orders that settle together:

• All execute at same oracle price
• Net position is the sum
• Fees calculated on net change

#Order Cancelled During Pending

If you cancel before settlement:

• Order is marked cancelled
• No position change
• Only gas cost incurred

#Settlement vs. Other Exchanges

#FAQ

#Q: Why didn't I get the price I saw?

Your order settles at the next oracle price, not the displayed price. This is by design to prevent front-running.

#Q: How long do I wait for settlement?

Usually 1-10 seconds. If oracle is stale or network congested, it may take longer.

#Q: Can I speed up settlement?

No. Settlement depends on oracle updates and keeper activity, not user action.

#Q: What if oracle never updates?

After 40 seconds of staleness, the system pauses. Your order remains pending until fresh prices arrive.

#Q: Is there slippage protection?

For market orders, no — you get the oracle price. For limit orders, yes — your limit price is respected.

#Summary

#Next Steps