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Strike Protocol allows positions to be closed at any time at the current market price, with automatic settlement based on profitability and treasury balance.

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Dynamic Fee Structure

Fees are calculated dynamically based on:
  • Price movement magnitude: Larger price moves incur lower fee percentages
  • Position size multiplier: Prevents manipulation through position-based scaling
  • No fees on losing positions: Only profitable trades are charged fees

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Position Lifecycle

Positions move through three distinct phases: Open → Closed → Settled
  • Open: Position is open with real-time PnL and funding accumulation
  • Closed: Position is closed and profitable but treasury is insufficient to pay out immediately. Losing positions settle immediately
  • Settled: Payout processed and funds transferred

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Settlement Process

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Payout Queue Flow

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Emergency Exit

Retrieve your margin when a profitable position is stuck in the payout queue:
  • Returns your original margin amount immediately
  • Forfeits any profits from the position
  • Removes position from the payout queue and settles it
  • Useful when you need immediate liquidity

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Example Close Flows

  • Profitable - Immediate Settlement
  • Profitable - Queued Settlement
  • Closing with Loss
Initial: Long BTC at 100,000 USD, 100 USD margin, 10x leverage

1. BTC rises to 110,000 USD (10% increase)
2. Click close position
3. Price PnL: +100 USD (10% of 1,000 USD notional)
4. Accumulated funding: -2 USD (paid over 8 hours)
5. Dynamic fees: ~15 USD (based on price move)
6. Net PnL: +83 USD
7. Treasury check: Sufficient funds available
8. Status: open → settled (skips closed status)
9. Balance credited: 183 USD (100 margin + 83 profit)