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# Pricing, settlement and the hedge on one chain
- URL: https://blog.dega.trade/pricing-settlement-and-the-hedge-on-one-chain/
- Published: 2026-10-09T09:00:00.000Z
- Updated: 2026-11-10T20:11:03.000Z
- Description: Lighter runs a deployment on Robinhood Chain quoted in USDG, so prices, payouts and Dega's hedge share one chain. How the hedge is sized, and when it halts.
- Author: Dega editorial
- Tags: Engineering

You open a BTC long in your funded account. After a configured 200 ms entry delay, the order matches against a simulated book built from Lighter's live depth. It never reaches Lighter's order book. Once the fill is committed, Dega recalculates its own hedge.

## One chain, one asset

Lighter runs a deployment on Robinhood Chain quoted in USDG, so pricing, settlement and the hedge all sit on the same chain and asset.

- **Pricing.** Your account is marked against Lighter's live prices, funding and conditions. All accounts share one effective book: Lighter's observed depth, less what simulated orders have already consumed. The balance is a score, not your money. Markets at launch are BTC and ETH, because depth is what makes a simulated fill honest and the hedge executable.
- **Settlement.** Payouts are USDG on Robinhood Chain, settled by smart contract with no discretionary approval in between, and Dega sponsors the gas. They are capped at $800 per person per day, with a lifetime limit of 20% of the deployable reserve at the moment the account is funded: $4,000 at the recommended $25,000 seed.
- **Your wallet.** The USDG you pay the fee with and receive payouts into sits in a wallet you control through a passkey. Dega does not hold trader funds.
- **The hedge.** Real positions on Lighter, funded from a segregated house account. They are Dega's own, never yours, and the payout reserve is never used as their margin.

## What the hedge is sized against

The hedge does not copy your trades. It tracks how fast what Dega owes moves with the price. Dega owes 80% of profit and nothing on a loss, so the obligation behaves like an option. An account in profit contributes close to its full share. An account deep underwater contributes almost nothing, because it is likely to breach and pay nothing. So Dega does not follow a losing trader down.

It is recalculated whenever the obligation changes: every committed fill, material mark move, funding settlement, payout, breach and new funded account. Assessment-stage orders are never hedged.

## The ordering constraint

One binding rule makes this safe: on a losing trade, your simulated account must reach its drawdown limit before Dega's real position can be liquidated. Your budget is 6% of the starting balance. Lighter's maintenance margin on BTC and ETH is 1.2%. So Dega's margin must exceed 1.2% plus your budget divided by your notional.

| Your leverage | Your notional | You breach at | Margin Dega must post | Max hedge leverage |
| ------------- | ------------- | ------------- | --------------------- | ------------------ |
| 1x            | $10,000       | 6.00%         | 7.20%                 | 13.9x              |
| 2x            | $20,000       | 3.00%         | 4.20%                 | 23.8x              |
| 5x            | $50,000       | 1.20%         | 2.40%                 | 41.7x              |
| 10x           | $100,000      | 0.60%         | 1.80%                 | 55.6x              |

The binding case is a trader with no leverage, who can absorb the full 6%. So the hedge book runs below 13.9x and is capped at 10x in practice. Below that ceiling your drawdown limit always triggers before Dega's liquidation price, at every position size the [10x trader limit](https://blog.dega.trade/leverage-is-10x-on-btc-and-eth/) allows.

## When the hedge cannot be executed

A hedge can fail, so the paper sets ceilings on the unhedged residual, how long it may persist, and how one-sided the book may get. If the hedge cannot be executed or reconciled within them, sales and new funded activations halt.

- Existing funded accounts continue to trade and to withdraw.
- Assessments already bought continue under the rules they were bought under.
- Payouts already earned are never affected.
- A committed fill in your account is final. A failed hedge never reverses it.

Growth stops, promises do not break.

## Netting as the book grows

Funded traders take both sides, and only the net needs hedging. On a comparable book captured 31 August 2026, long exposure was $8.34 million and short $5.39 million: net $2.95 million on $13.73 million gross, or 21.5%.

The paper's simulation, on an observed 61% long bias, has net exposure at 100% of gross with one funded account, 29% at 12, 23% at 50 and 22% at 500\. The hedge needed per account falls as the book grows. The caveat is a strong trend, when traders crowd one way and net approaches gross. A concentration limit and the daily solvency gate cover it, and it must be modelled before launch.

None of this is running yet. The hedge must run, with the ordering constraint verified at every trader position size, before any paid user.

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*Nothing has launched. Every figure in this post is a design figure from the Dega yellow paper, version 2.0, dated 22 September 2026\. Dega is not an exchange, broker, custodian or investment manager. Accounts are simulated: orders do not reach Lighter's order book, and the account balance is not your money. Dega's hedge positions are Dega's own, never yours. Payouts are subject to a lifetime limit of 20% of the publicly visible reserve and a per-user cap of $800 a day.*