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Winding down markets and final settlement
Winding down markets and final settlement

Winding down a market using v4 software

dYdX Operations Services Ltd. avatar
Written by dYdX Operations Services Ltd.
Updated over a week ago

Context

There may be cases when an applicable governance community votes to wind down a market using v4 software.

How the wind down process is done:

The Wind down process is as follows:

  1. A decision by the applicable governance community is made to wind down a market.

  2. If the vote passes, the market enters the final settlement procedure.

    1. Cancel all open orders for the market

    2. Block trades from being placed

    3. Close out all open positions automatically through deleveraging — the indexer and front end will display the order type as Final Settlement

  3. Market will no longer be available to trade.

    1. Fills history will still display trades in the market.

    2. The market will no longer be available on the front end or tradable via the protocol.

FAQ: What happens to an open order when the market is wind down?

All open positions will get automatically closed through deleveraging and the order will be displayed as final settlement.

Disclaimer and Terms

This document may provide information with respect to the dYdX Chain software, and/or non-mandatory guidelines and suggestions that may help with using dYdX Chain software. dYdX Operations Services Ltd. does not run dYdX Chain validators nor operate or control the dYdX Chain network. dYdX Operations Services Ltd. is not responsible for any actions taken by other third parties who use dYdX Chain software. dYdX Operations Services Ltd. services and products are not available to persons or entities who reside in, are located in, are incorporated in, or have registered offices in the United States or Canada, or Restricted Persons (as defined in the Terms of Use). The content provided herein does not constitute, and should not be considered, or relied upon as, financial advice, legal advice, tax advice, investment advice or advice of any other nature, and you agree that you are responsible to conduct independent research, perform due diligence and engage a professional advisor prior to taking any financial, tax, legal or investment action related to the foregoing content. The information contained herein, and any use of products or services provided by dYdX Operations Services Ltd., are subject to the Terms of Use.

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