Docs / Mechanics / Settlement
Settlement
Drawing a position hands you a 24 hour exclusive choice between taking the NFT and selling it back for 90% of the BNB behind it. Whichever side you leave goes to the depositor.
What you are holding after a draw
A position is an NFT and an amount of BNB locked together. When it is drawn, the acquirer gets to say which of those two they take. The depositor receives the other one.
That is the whole mechanism, and it is why the pool works at all. The BNB is a price the depositor themselves set, so an acquirer who draws something they do not want is not stuck with it. They can hand it straight back and take the cash instead.
You can never keep both. Every one of the four paths below gives the acquirer exactly one side of the position and the depositor the other.
The four options
a. Keep
Take the NFT. The BNB behind it goes to the depositor, minus ownerSettlementFeeBps of 100, which is 1%.
This is the path you take when the NFT is worth more to you than the backing. You already paid the acquisition fee, so nothing further is charged to you here. The 1% is taken from the depositor's returning backing.
b. Keep and relist
Take the NFT, then immediately open a new position with it in the same transaction, backed with an amount of BNB you choose.
The original depositor is unaffected by your decision to relist. They receive the same net return as in option (a), backing minus 1%. From the pool's side you have simply become a depositor: your new position has its own backing, its own weight, and starts earning from the moment it goes active.
The backing you set is a fresh number. It does not have to match what was behind the NFT when you drew it.
c. Standing bid
Sell the NFT back. You receive 90% of the backing in BNB. The protocol keeps 10% as the settlement discount. The NFT goes to the depositor.
The standing bid is a floor, not a profit. You paid roughly the expected backing plus 2.5% to draw, and the bid returns 90% of the backing you actually drew, so a strategy of always selling back loses money on average. What it buys you is certainty: there is no draw in the pool that can leave you holding an NFT you do not want with no way out.
d. Bid as $BWA
Identical to option (c) in every respect, except the 90% is paid to you in $BWA instead of BNB. Same 10% settlement discount, same NFT going back to the depositor.
The four paths side by side Illustrative
A position backed with 0.2 BNB, drawn by an acquirer. Nothing here is read from chain.
| Path | Acquirer gets | BNB to acquirer | Depositor gets | BNB to depositor | To protocol |
|---|---|---|---|---|---|
| a. Keep | The NFT | 0.000 | The backing, less 1% | 0.198 | 0.002 |
| b. Keep and relist | The NFT, relisted | 0.000 | The backing, less 1% | 0.198 | 0.002 |
| c. Standing bid | 90% of the backing | 0.180 | The NFT | 0.000 | 0.020 |
| d. Bid as $BWA | 90% of the backing, in $BWA | 0.180 | The NFT | 0.000 | 0.020 |
Every row adds to 0.200 BNB, the backing that was locked. The acquisition fee the acquirer paid is a separate flow, shared across all active positions and the buyback, and is not in this table. Fees covers it.
The two windows
Settlement is on a clock so a position can never sit open forever waiting on someone who has lost interest or lost their keys.
| From | Until | Who may act | What they may do |
|---|---|---|---|
| 0 | 24h | The acquirer, exclusively | Choose any of the four paths. Nobody else can touch the position. |
| 24h | 7d | The depositor | Resolve the position. The acquirer's exclusive claim on the choice has lapsed. |
| 7d | — | Anyone | Finalise the position, so it can always be closed by a third party. |
The 7 day step is what makes the pool self-clearing. It does not depend on the acquirer, the depositor, the team or a keeper. Any address can send the transaction, which means a stuck position is always somebody's problem to solve and never nobody's.
The path a lapsed position resolves into is fixed in the contract rather than chosen at resolution time. It is listed as — here until the deployed contract can be read.
NFT delivery is best effort
Sending an NFT can fail. The receiving address might be a contract without onERC721Received, it might revert, or the token contract itself might have gone strange. If a failed transfer could revert settlement, one bad NFT would freeze the BNB of everyone involved.
So the protocol does not let it.
- Settlement attempts the NFT transfer.
- If the transfer fails, it is recorded as separately claimable by the address that was owed it.
- The BNB side of settlement completes either way.
- The owed party claims the NFT later, in its own transaction, at their convenience.
Settlement must never lock. Money movement and NFT movement are separated so that a failure in one cannot hold the other hostage. The same reasoning applies to pull based refunds.
Reading a settlement
Whichever path is taken, three things are true when a position closes.
- The acquirer holds exactly one side of the position: the NFT, or BNB, or $BWA of equivalent value.
- The depositor holds the other side.
- The protocol has taken either 100 bps or 1000 bps of the backing, depending on which side the acquirer took, and 100% of that funds a $BWA buyback.