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Parcl Treasury

Treasury is the protocol-operated vault. It absorbs liquidated inventory and supplies liquidity to the order book.

Where to see it

The vaults page in the trading UI shows Treasury collateral, open positions, and recent flows. The same account data is available through the validator API.

Public vault status

Read Treasury's live vault configuration for public-deposit availability and fees before presenting a deposit action. See community vaults for the general share and withdrawal mechanics.

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, Treasury can inherit its positions and unwind them through the order book. Anything Treasury cannot absorb falls through to auto-deleveraging (ADL), which can take only a counterparty's positive unrealized PnL. Treasury owns any bad debt left after ADL exhausts those counterparties.

Risk

Treasury holds positions. It can lose money. The principal risks are:

  • Inherited inventory. Treasury takes positions at user entry prices. Mark can move against those positions before Treasury unwinds them. Sustained adverse moves on a thinly quoted market are the worst case.
  • Solvency cap. If Treasury runs out of collateral during a liquidation cascade, residual positions route to ADL. See Liquidations and ADL.
  • ADL exhaustion. Profitable counterparties forfeit at most positive unrealized PnL. Any position and balance left after they are exhausted moves to Treasury as bad debt.
  • Market-making risk. Treasury holds inventory like any other market maker. Bad inventory, adverse selection, or a stale model can cost money.