Settle and payout

settle(policyId) is permissionless. The buyer, a keeper, or a stranger can send it. The shipped keeper bot does not. It only records prices.

Settle succeeds whenCopy Anchor Link

All of these are true. The caller does not pass a price or a timestamp.

1. The policy is active: activeFrom has passed and expiry has not.
2. The 5-minute average now is at or below (1 - drop) times the entry average.
3. The buyer still holds at least coveredTokens.
4. The same drop still holds on the 5-minute average at each of the last K observations (default 3), each in its own block, each at or after activeFrom.

The payout is the loss from the entry average, capped by the coverage purchased. See Coverage.

Then it waitsCopy Anchor Link

The status becomes pending. The USDG is reserved from the backing cells. For 2 hours a backing LP may challenge. release after the deadline pays the buyer and does not recheck the price. Silence means the payout stands.

If the term ends with no settle, anyone can close the policy. The premium stays with the LPs and the locked capital unlocks.

A settle test on the demo poolCopy Anchor Link

1. Buy cover from a second wallet and wait until activeFrom.
2. Keep the keeper recording so the 5-minute average and the last three samples exist.
3. Sell a large amount of the meme from the deployer, not from the buyer.
4. Wait until the new price has been the average for about five minutes and the last samples are all down.
5. Call settle. If the average is still the old price, it reverts. If the buyer sold the bag, it reverts with a holding error.

A 0.5 token sell does not move a pool of 1 billion tokens and 10,000 USDG. See Demo swap.