Parcl Treasury
Treasury is the protocol's own vault. It runs the liquidation backstop and the protocol's market-making strategies. The vault sits between the protocol and traders: it absorbs liquidated inventory and supplies liquidity to the book.
What's in it
One master account with three subaccounts:
| Account | Role |
|---|---|
| Treasury master | Holds protocol cash. All scalar flows (trading fees once they're on, liquidation residuals, funding imbalance) settle here. |
| Real-estate market maker | Provides liquidity on real-estate markets. |
| Commodity market maker | Provides liquidity on commodity (and later crypto) markets. |
| Liquidator backstop | Every market routes its market_backstop_account here. When a position is liquidated past maintenance margin, the backstop inherits the inventory at the user's entry price and unwinds it. |
Each subaccount runs its own capital silo: losses or gains on one cannot reach the others, and capital only moves back to the master via an authorized transfer. All three subaccounts use the same matching-engine API as any other account on the chain.
Where to see it
The vaults page in the trading UI lists Treasury master and each sub-vault. You can see live collateral, open positions, and recent flows between accounts. The same data is on the validator API at /v1/accounts/{master_id} and the rest-api at /explorer/treasury/subaccounts?master_account_id=....
Strategies are private. The numbers are public.
Deposits
Closed during the devnet phase. Treasury runs on internal capital while the strategies and backstop sizing are evaluated under live trading. When deposits open, Treasury will operate as a community vault: pro-rata share of PnL, pro-rata share of losses, NAV-based share accounting, and a withdrawal lockup. The mechanics will match the community-vaults primitive already on chain.
What Treasury does in a liquidation
Full mechanics live in Liquidations and ADL. In short: when an account drops below maintenance margin and is deeply underwater, its positions are inherited by the Liquidator backstop at the user's entry price. The backstop then unwinds the inventory through the orderbook. Anything the backstop cannot absorb falls through to symmetric auto-deleveraging (ADL).
Risk
Treasury holds positions. It can lose money. Three categories of risk:
- Inherited inventory. The Liquidator backstop takes positions at user entry prices. Mark can move against those positions before they are unwound. Sustained adverse moves on a thinly-quoted market are the worst case.
- Solvency cap. If the backstop runs out of collateral mid-cascade, residual positions route to ADL. That's an explicit failure mode, not a hidden one — see Liquidations and ADL.
- Market-making risk. The market-making subaccounts hold inventory like any other market maker. Bad inventory, adverse selection, or a stale model can cost money.
Treasury's transparency cuts both ways: when it loses money, that shows up on chain too.
Roadmap
- Devnet trading phase: Treasury runs on internal capital. Strategy performance, fee impact, and backstop behavior are observed under live trading load.
- Deposits open: community deposits accepted once strategies and backstop sizing have demonstrated durability. NAV resets to 1.0 against the master's collateral at the moment deposits open.
- Mainnet: Treasury ships with deposits open. Any performance-fee schedule will be published before launch.