Ascemarket

AsceMarket enables customers to buy, sell and combine standardized covers into protection for future event outcomes. Each cover has a defined payout function, allowing binary, categorical, range , scalar and other contracts to share a common accounting framework. Customers select listed covers and quantities to build their desired exposure, then adjust that protection through subsequent purchases and sales.

The product connects two complementary needs: customers need protection that fits their exposure, and makers need an efficient way to fund the obligations they supply. AsceMarket brings both into a portfolio-aware clearing and settlement system.

A cover defines a payment. A portfolio combines those payments. The clearing system determines how much capital is needed to support the resulting obligation.

For any permitted outcome, an account’s entitlement is calculated as:

Account entitlement = cash balance + payouts receivable − payouts owed

The clearing system requires this entitlement to remain nonnegative across every permitted settlement outcome, including contractually defined exceptional outcomes. Positive positions represent payment rights; negative positions represent underwriting obligations. Premiums, fees, deposits and withdrawals enter the cash balance explicitly.

Compatible obligations share collateral based on their maximum combined liability, while every account remains fully funded:

Required backing = the largest net payout owed across all permitted outcomes, with a minimum of zero

This approach recognizes that different covers do not necessarily reach their maximum payouts together. Funding each cover independently can therefore lock more capital than the combined portfolio actually requires. AsceMarket evaluates their contractual relationship and funds the full combined obligation.

For example, consider three covers on the same BTC observation:

• A binary cover paying up to $10,000 when BTC reaches or exceeds $100,000.

• A range cover paying $10,000 when BTC is between $80,000 and $100,000.

• A scalar cover paying up to $5,000, declining from its full payout at $80,000 to zero at $100,000.

Their individual payout caps total $25,000, but their largest combined payment is $15,000. The demonstrated portfolio therefore requires 40% less backing than funding its covers separately, while preserving every contractual payout. This is a measured benefit for that portfolio and baseline; the saving depends on the positions being combined.

Premiums received from customers can contribute to the required backing. If the same portfolio receives $6,000 in premiums, the maker supplies the remaining $9,000, producing the full $15,000 reserve. Premiums are counted once, and customer entitlements remain unchanged.

Atomic execution preserves these funding requirements when participants trade, adjust positions or withdraw available capital. A package of trades completes only if all affected accounts satisfy the funding rules after payments, fees and position changes. This allows compatible purchases and sales to be executed together while maintaining their offsets. Collateral sharing applies within eligible portfolios; referencing the same underlying asset alone does not establish an offset across different observation dates or settlement terms.

At final settlement, each cover’s contractual payout is applied to the account’s cash balance and its settled position is removed. The accounting preserves total entitlements, prevents double payment and releases backing no longer needed. Before settlement, withdrawals are limited to the amount that remains available under every permitted outcome.

AsceMarket also supports trading through related covers. When an accepted combination reproduces a requested payout exactly, executable component offers can provide an alternative to a direct quote. This creates a foundation for connecting liquidity across reusable contracts, subject to available prices, quantities and funded counterparties.

The architecture brings flexible protection and efficient underwriting together: customers build exposure from reusable covers, while makers fund the actual combined obligation. Its broader ambition is to make future-state protection a more adaptable financial building block, supported by a clearing system that understands the portfolio as a whole. The AsceMarket whitepaper develops this foundation through a unified payout representation, mathematical funding rules, atomic trading mechanics, settlement accounting and worked examples. The accompanying executable reference model and comparative research test the accounting and capital-efficiency mechanisms. Together, they establish how standardized covers can share funding without weakening their payment guarantees—and how that efficiency can support