Settlement & Payout
At maturity the contract settles the position: one read of the settlement oracle, and the rate gap pays in cash.
What happens at maturity?
Settlement runs without either side acting. At maturity the contract reads the settlement oracle once, pays the gap between the locked rate and that fixing, and returns each side's initial margin. Everything clears in one transaction, in the position's stablecoin, USDC or EURC.
How is the payout calculated?
The payout follows one linear formula, symmetric for both sides:
payout = notional × (lockedRate − fixing)
notional: the size of the forward, in the base currency.lockedRate: the rate both parties signed into the Terms at binding.fixing: the settlement rate, the price the one oracle read returns.
The payout is a single number that one side pays and the other receives: the contract credits it to one margin account and debits it from the other in the same transaction. Each side knew which direction it stood the moment it signed the locked rate.
What settles the trade?
The fixing is the Pyth EMA, an hour-long weighted average of the same feed that marked the position throughout. A single print cannot move an hour's average, the property a final settlement rate needs. Where the oracle's prices come from, and the checks that gate them, are covered in Oracle (~3 min).