> 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 an automated order matching engine with 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

```
┌─────────────────────────────────────────────────────────────────────┐
│                         HPDX FUTURES                                │
├─────────────────────────────────────────────────────────────────────┤
│                                                                     │
│  ┌──────────────┐    ┌──────────────┐    ┌──────────────────────┐   │
│  │   TRADERS    │    │   MINERS     │    │   KEEPERS (ANYONE)   │   │
│  │              │◄──►│              │◄──►│                      │   │
│  │  Long/Short  │    │  Sell Hash   │    │  Settle & Liquidate  │   │
│  └──────┬───────┘    └──────┬───────┘    └──────────┬───────────┘   │
│         │                   │                       │               │
│         └───────────────────┼───────────────────────┘               │
│                             ▼                                       │
│  ┌──────────────────────────────────────────────────────────────┐   │
│  │                    FUTURES CONTRACT                          │   │
│  │  ┌─────────────┐  ┌─────────────┐  ┌─────────────────────┐   │   │
│  │  │   ORDERS    │  │  POSITIONS  │  │   MARGIN ACCOUNTS   │   │   │
│  │  │  Buy/Sell   │  │ Long/Short  │  │     Collateral      │   │   │
│  │  └─────────────┘  └─────────────┘  └─────────────────────┘   │   │
│  └──────────────────────────┬───────────────────────────────────┘   │
│                             │                                       │
│                             ▼                                       │
│  ┌──────────────────────────────────────────────────────────────┐   │
│  │                   HASHRATE ORACLE                            │   │
│  │  ┌─────────────────┐    ┌────────────────────────────────┐   │   │
│  │  │ BTC/USD Price   │ +  │  Mining Difficulty (H/BTC)     │   │   │
│  │  │ (Chainlink)     │    │  (Off-chain Indexer)           │   │   │
│  │  └─────────────────┘    └────────────────────────────────┘   │   │
│  │                    = Hashprice (Token/Hash)                  │   │
│  └──────────────────────────────────────────────────────────────┘   │
│                                                                     │
└─────────────────────────────────────────────────────────────────────┘
```

## How It Works

### 1. Deposit Collateral

Participants deposit the settlement token (e.g., USDC) into the Futures contract, receiving wrapped tokens (`wUSDC`) representing their margin balance.

### 2. Place Orders

Create buy (long) or sell (short) orders specifying:

* **Price**: The hashprice per day in settlement tokens
* **Maturity Date**: When the contract matures and becomes settleable (`deliveryAt`)
* **Quantity**: Number of contract units (+/- for direction)

### 3. Order Matching

Orders are matched automatically when opposing orders exist at the same price and maturity date. The matching follows a **FIFO (First-In-First-Out)** queue, ensuring fair price-time priority.

### 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 >= deliveryAt`):

* 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