Targets and fixed prices

A Contract seller chooses one of two amount modes. Both use the payout asset: USDC for sell yesterday, BTC for buy yesterday.

	Target receipt	Fixed Contract price
What stays fixed?	The requested funded maximum for a contract fill	The positive payment required from the buyer
What changes with conversion?	The buyer payment needed to reach the target	The total funded maximum
Can it become a direct swap?	Yes, if conversion meets the target	No
Order behavior	Limit only	Limit or market

Target receipt

The seller sets a target amount. If conversion returns less than that target, the buyer must fund the difference.

For a 1 BTC sell order with a 79,000 USDC target:

Conversion returns	Required buyer payment	Funded maximum
76,000 USDC	3,000 USDC	79,000 USDC
78,000 USDC	1,000 USDC	79,000 USDC

These are possible new fills at different prices. Each also gets its own q.

A target is conditional

In a contract fill, the target is the total funded maximum, not a guaranteed seller payout. The buyer may receive part or all of it at settlement. The seller can receive zero.

If conversion alone reaches the target, the order completes as a direct swap for that executed size. The seller receives all the output.

Fixed Contract price

The seller instead sets a positive buyer payment. If conversion returns 76,000 USDC and the fixed price is 1,000 USDC, the contract holds 77,000 USDC. If conversion returns 78,000 USDC at a later fill, it holds 79,000 USDC.

For buy yesterday, a fixed price is fixed in BTC. Its displayed USDC value can move without changing the authorized BTC amount.

For market orders, the accepted fill price must also meet the owner’s slippage bound.

Reference adjustments

The app may explain a funded maximum as below or above the reference receipt. For sell, the reference receipt is the size multiplied by K in USDC. For buy, it is the BTC reference size.

That difference is an explanation of the quote. It is not another fee or transfer. A contract inside the direction band can have a maximum above the reference receipt.

Smaller fills

Targets and fixed prices are stated per 1 BTC of reference size and scaled to the executed size. A 0.25 BTC fill uses a quarter of the per-unit amount, with the specified token rounding. See partial fills.