> For the complete documentation index, see [llms.txt](https://gitbook.hashpower.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gitbook.hashpower.io/01.overview.md).

# HPDX Hashprice Futures

Decentralized Futures Market for Bitcoin Hashrate

> **Published documentation:** [gitbook.hashpower.io](https://gitbook.hashpower.io)

***

## Introduction

HPDX Hashprice Futures is a decentralized derivatives protocol enabling participants to trade standardized, cash-settled contracts on future Bitcoin mining hashprice. Built on EVM-compatible blockchains, it provides a trustless marketplace where miners can hedge their production and traders can gain exposure to hashrate as an asset class.

The protocol uses a per-maturity limit order book on a fixed price grid, collateralized margin accounts, and Chainlink-powered oracles for real-time hashprice discovery.

## Key Features

| Feature                     | Description                                                      |
| --------------------------- | ---------------------------------------------------------------- |
| **Standardized Contracts**  | Fixed hashrate speed (TH/s) per contract unit                    |
| **Multiple Maturity Dates** | Trade contracts maturing on configurable future dates            |
| **Margin-Based Trading**    | Collateralized positions with automated risk management          |
| **Cash Settlement**         | Positions are marked to the oracle price at maturity             |
| **Decentralized Oracles**   | Real-time hashprice derived from BTC price and mining difficulty |
| **Automated Liquidation**   | Margin call system prevents counterparty defaults                |

## Architecture

```mermaid
flowchart TB
  subgraph actors [Participants]
    T[Traders<br/>long / short]
    M[Miners<br/>sell hash exposure]
    K[Keepers<br/>settle & liquidate]
  end

  subgraph futures [Futures contract]
    O[Orders<br/>buy / sell ±qty]
    P[Positions<br/>aggregate per expiry]
    C[Margin accounts<br/>vault collateral]
  end

  subgraph oracle [Hashrate oracle]
    BTC[BTC/USD price<br/>Chainlink]
    DIFF[Mining difficulty<br/>off-chain indexer]
    HP[Hashprice<br/>token / hash]
  end

  T --> futures
  M --> futures
  K --> futures
  futures --> oracle
  BTC --> HP
  DIFF --> HP
```

## How It Works

### 1. Deposit Collateral

Participants deposit the settlement token (e.g., USDC) into the Collateral Vault used by Futures.

### 2. Place Orders

Create buy (long) or sell (short) orders via `createOrder(price, expirationAt, quantity, timeInForce)`:

* **Price**: Hashprice in settlement tokens
* **Maturity Date**: When the contract matures (`expirationAt`)
* **Quantity**: Signed whole contracts (`+` long / `−` short)

### 3. Order Matching

Incoming limit orders walk the opposite book for the same maturity from best price toward the taker's limit (price-time priority). Fills occur at each **maker's resting price** (price improvement allowed). Unfilled remainder rests at the taker's limit. Within each price level, matching is **FIFO**.

### 4. Position Management

Once matched, positions are held until either:

* **Closed Before Maturity**: User exits by placing an opposite order
* **Maturity**: The position becomes settleable at the oracle mark price
* **Liquidation**: Margin call triggered due to insufficient collateral

### 5. Settlement

At maturity (`block.timestamp >= expirationAt`):

* The position is **cash-settled**: its full notional is marked to the HPDX Hashprice Oracle price (`getMarketPrice()`) and PnL is routed through the insurance fund
* Settlement is **permissionless** — anyone (typically a keeper) can call `settlePosition(positionId)` (or batch `settlePositions(...)`); a matured position can be settled any time after maturity
* See [Settlement](/05.delivery-settlement.md) for full details

## Deployed Contracts (dev)

| Network      | Chain ID | Application                              | Futures Contract                             | Hashprice Oracle                             |
| ------------ | -------- | ---------------------------------------- | -------------------------------------------- | -------------------------------------------- |
| Base Sepolia | `84532`  | <https://dev.hashpower.exchange/futures> | `0x56d8d4a03a0f34b93b86e0b7941aff29178d0479` | `0x6f501d6ea22c910e657ad3650f45a76dc525e387` |

Explorer: [Base Sepolia](https://sepolia.basescan.org)

## Documentation

| Document                                                  | Description                                       |
| --------------------------------------------------------- | ------------------------------------------------- |
| [Contract Specifications](/02.contract-specifications.md) | Detailed contract parameters and mechanics        |
| [Margin System](/03.margin-system.md)                     | Margin requirements, maintenance, and liquidation |
| [Trading Guide](/04.trading-guide.md)                     | How to create orders and manage positions         |
| [Settlement](/05.delivery-settlement.md)                  | Cash settlement of positions at maturity          |

## Security Considerations

* **Upgradeable**: Uses UUPS proxy pattern for bug fixes and improvements
* **Access Control**: Admin parameters restricted to the owner; settlement (`settlePosition`) and liquidations are permissionless
* **Oracle Safeguards**: Staleness checks prevent trading on outdated prices