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Settlement

After allocation, a purchaser keeps the NFT or sells it back to the depositor by accepting the pre-funded standing bid.

Allocation doesn't transfer anything right away. It marks the position as allocated to you and lets you choose how to settle1:

  • Keep the NFT. You get the NFT; the depositor gets their backing back (minus a small protocol cut).
  • Accept the depositor bid. You sell the NFT back to its original depositor for the pre-funded standing bid: seller is you, buyer is the depositor, and the price is most of the backing, after a settlement discount (you receive 85% by default). The NFT returns to the depositor, and the slice you give up is that discount.
  • Accept the bid, settled as FWA. Same sale and same amount, but the ETH buys FWA from the pool and sends it to you, a one-click exit into the reward token.

You can never keep both the NFT and the ETH; accepting the bid requires transferring the NFT to the depositor. You get an exclusive window to choose. Miss it, and the depositor can resolve it; miss a longer window, and anyone can finalize the default outcome (NFT to you, backing to the depositor), so nothing ever locks up. NFT delivery is defensive: a broken or malicious NFT collection can never block a settlement. The ETH still settles and the NFT is recorded as separately claimable later.

Technical breakdownonchain

  1. 1.
    Timeline: settlementWindow = 24h (purchaser only) → depositor may resolve → finalizeWindow = 7d (anyone). A purchaser's keep-NFT settlement is strict (reverts on failure, so they can fall back to accepting the bid); every other resolution delivers the NFT best-effort and, on failure, emits NFTDeliveryFailed and leaves it claimable via StuckNFTRecovered.