🐋
Moby
  • Let’s Get Started
    • 🐋 About Moby
    • ⚡ Our Vision
    • 🤓 Your Guidebook
      • Get Setup
        • Connect Wallet
        • Trade Options
        • 0DTE Options
        • Provide Liquidity
      • Fees & Instruments
        • Fee Generation
        • Fee Distribution
        • Instruments
      • Testnet
  • How it’s Built
    • 🚀 Synchronized Liquidity Engine (SLE)
    • 🧮 Options Pricing Model
      • Mark Price
        • Futures Index
        • Implied Volatility
      • Risk Premium
        • Deriving Greeks
        • Risk Premium Calculation
        • Risk Managing Mechanism
    • 🤖 Architecture
      • Liquidity Provision Mechanism
      • Options Listing Standard
      • How to Open / Close / Settle Position
      • Synchronized Liquidity Engine (SLE)
      • Options Position Tokens
      • Tools to Maximize Capital Efficiency
    • ⚙️ Key Features
      • High Leverage & Limited Risk with No Liquidation
      • Narrow Spread with Dynamic Risk Premium
      • Guaranteed Settlement
      • Capital Efficiency Improvements with Combo Options
      • Even Higher Capital Efficiency with Clearing House
      • Abundant Liquidity for All Options
      • Composable Options for Structured Products
      • High Profitability for LPs
      • Real-Time Automatically Hedged OLP
      • Upcoming Features
    • ⛓ DeFi Options Vault
      • 🐻 Berachain DeFi Options Vault
        • 🔒 Architecture
        • 📈 Options Strategy
  • How it’s Driven
    • 🛡️ Building the Safest DeFi Protocol
      • Safety Features
      • Smart Contract Audit & Real-Time Security Monitoring
    • 🏛 Backed by Decentralized Governance
      • Governance
    • 🌐 Led by the Best Partners & Community
      • Arbitrum X Moby
      • Engagement Programs
  • Need More Info?
    • 📚 Resource Library
      • Developer Resources & Educational Contents
      • Terms & Conditions
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      • FAQ
  • Developers
    • Moby Traders API
      • REST API
        • General
        • Account
        • Market
    • Trade Scripts
      • Prerequisites
      • Open Positions
      • Close Positions
    • Interfaces & ABI
      • PositionManager.sol
      • SettleManager.sol
      • RewardRouterV2.sol
      • OptionsMarket.sol
    • Appendix 1: Parameters for Open/Close Options
    • Appendix 2: the Diff between optionId and optionTokenId
    • Appendix 3: Sample Moby Contract Module for Developers
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On this page
  • Quick Glossary Before You Read
  • What is Clearing House?
  • Why is Clearing House Important?
  • How does Clearing House Work?
  1. How it’s Built
  2. ⚙️ Key Features

Even Higher Capital Efficiency with Clearing House

Quick Glossary Before You Read

  • Payoff: The sum payable by the Settlement Contract to the holder of a Long position at the settlement of a particular options position

  • Max Payoff: The maximum payout achievable for a specific options position upon its settlement after expiration

What is Clearing House?

  • Moby's Clearing House operates akin to TradFi institutions, facilitating netting processes that improve OLPs Asset Utility Ratio

  • With Clearing House, Moby’s OLPs can theoretically achieve unlimited growth in capital efficiency

Why is Clearing House Important?

  • Because Options Position Tokens issued on Moby are fully collateralized, OLPs entering short positions are required to maintain collateral up to Max Payoff until they are settled

  • It is thus crucial for OLPs to effectively manage collateral requirements to enhance capital efficiency and thereby generate additional sources of income

How does Clearing House Work?

  • In cases where an OLP has both Long and Short positions in the same options against different traders, these can be netted to reduce the Max Payoff to zero effectively

  • The netting process is initiated by the Clearing House, prompting the OLP to identify Long and Short Options Position Tokens with matching expiration dates and strike prices in their portfolio

  • Identified matching pairs are burned and OLPs are allowed to reclaim the assets held as collateral, minus any fees owed to the Clearing House

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Last updated 1 year ago