Settlement Rules

What will happen at TGE Time?

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1. Ideal Case

Definition: Everything works as expected at TGE.

Conditions (all must be true)

1. Token live on Agreed Chain The token contract is deployed on the chain that the listing specified, and that’s the chain both Seller and Buyer are trading/expecting delivery on.

2. Claimable at settlement start As soon as settlement begins, the Seller can claim/unwrap/unlock the tokens (no portal downtime, no issuer pause).

3. Easy route to deliver If the token originated elsewhere, there’s a supported, healthy bridge/route to the Agreed Chain with normal fees and confirmations (no special setup, no custom SMC needed).

What users should expect

• Timer: 4-hour settlement window starts at Activation.

• Action: Seller sends tokens directly to Buyer’s address on the Agreed Chain and posts the tx hash.

• Result: Status moves to Settled once confirmations clear.

• Important Notes: In Pre-Market, the Seller may choose to either Settle (deliver tokens) or Default (do not deliver and lose collaterals). This option exists because TGE prices can move sharply; pre-market is price discovery, not a guaranteed forward.

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2. Unexpected Cases

2.1 Seller cannot claim or cannot bridge (temporary)

If the Seller cannot claim tokens yet (claim portal down/paused) or cannot bridge due to temporary bridge/routing outage:

• Whales toggles Extended Settlement and pauses the 4-hour timer.

• Extension window: up to 48 hours if chain/bridge/network incident persists.

2.2 No pool / No route on the Agreed Chain at TGE

If there is no viable route to deliver on the Agreed Chain at settlement time (e.g., no pool/liquidity, or direct issuance is on another chain):

• Whales may provide a temporary cross-chain settlement smart contract (SMC) that escrows the Seller’s tokens on the source chain and executes a supported bridge to the Agreed Chain for delivery.

• Extension window: Up to 48 hours to allow SMC deployment and route settlement.

• If a safe route remains unsupported, see Section 3.3.

2.3 Cross-chain not supported

If a safe, supported cross-chain route cannot be provided in time:

• Whales will Cancel Market for the affected pair/chain path.

• Affected unsettled trades are Canceled and escrows are released back to the rightful parties.

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3. Risk Disclosures

In the event Whales Market cancels a pre-market trade, users are expected to understand and accept the associated risks and obligations.

3.1 Buyer risks

Case #1: Pre-market works perfectly without any issue at settlement

If the TGE price is way too high than the token price you bought, a seller may default the order, and thus give up collateral to the buyer.

Example:

• Pre-market fill for Token A at $0.50.

• TGE prints around $1.50.

• Seller Defaults to capture the higher profits.

• Buyer receives their collateral plus the Seller’s collateral; no tokens are delivered.

Important Notes: If the settlement time is passed, the buyer has the right to cancel the order. If the buyers don’t cancel, the seller still has the right to settle tokens at any time until the order is either settled or cancelled.

Case #2: If Pre-Market is cancelled

The buyer will receive their collateral back.

3.2 Seller risks

Case #1: Pre-market works perfectly without any issue at settlement

If a seller fails to settle within the settlement timeframe, it will grant buyers the right to cancel.

Case #2: If Pre-Market is cancelled

The seller will get their collateral back and forfeit any profits from selling tokens on pre-market

3.3 Resell Buyer

Case #1: Pre-market works perfectly without any issue at settlement

• Resell buyers are a riskier party than others in a pre-market.

• Once you buy a resell order, you will inherit the original buyer’s collateral and obligations.

• If you buy a resell order at a high price (e.g 80% more than the original price) and TGE price is higher than the resell price, The seller has an option to default the order and thus the buyer might not get any profits from the trade

Case #2: If Pre-Market is cancelled

The buyer will incur a loss in this situation.

For example:

• user A sells 1,000 tokens A for $0.5 per token => $500 collateral locked in contract

• Original buyer B buys 1,000 tokens at $0.5 per token A => $500 collateral locked in contract.

• user C buys a 1,000 tokens resell order at $0.9 per token A => Original Buyer B receives $900 instantly.

• If pre-market is cancelled, user A receives $500 collateral back and user C ONLY receives the original buyer B’s $500 collateral => User C incurs a loss of $400.

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Wait until TGE: Neither sellers nor buyers can settle or cancel orders before the Token Generation Event (TGE).

The 4-hour countdown starts only when the project’s token is officially listed on markets.

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FAQ

When does the settlement phase happen, and how long does it last?

The settlement phase begins when a project's token is officially listed on centralized (CEXs) or decentralized (DEXs) exchanges. This phase lasts for 4 hours

What happens if a Seller doesn't settle on time?

If the seller misses the 4-hour settlement deadline, their Order will become OVERDUE. The seller will lose their collateral, and it will be transferred to the buyer.

As a Buyer, what can I do if a seller doesn't settle?

If the seller misses the 4-hour settlement deadline, their Order will become OVERDUE. The seller will lose their collateral, and it will be transferred to the buyer.

What does a seller get after a successful settlement?

After a successful settlement, the seller will get their collateral back and receive the payment from the buyer.

Why can't I cancel or settle an order before TGE?

Neither sellers nor buyers can settle or cancel an Order before the TGE (Token Generation Event). The settlement process only begins once the project's token is officially listed on markets.