Parcl Treasury
Treasury is the protocol-operated 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. Trading fees, funding imbalance, and residual liquidation bad debt settle here. |
| Real-estate market maker | Provides liquidity on real-estate markets. |
| Crypto market maker | Provides liquidity on continuously-traded (crypto) markets. |
| Liquidator backstop | Every market identifies its required route through backstopAccountId. 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. 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 the Treasury master and its subaccounts. 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=....
Deposits
Open. Treasury operates as a community vault: you can deposit and hold NAV-based shares in it. You earn a pro-rata share of its PnL and bear a pro-rata share of its losses. It runs the same deposit, share-accounting, and withdrawal mechanics as any other community vault, including any withdrawal lockup.
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, the Liquidator backstop inherits its positions at the user's entry price. The backstop then unwinds the inventory through the orderbook. Anything the backstop cannot absorb falls through to auto-deleveraging (ADL), which can take only a counterparty's positive unrealized PnL. The Treasury master owns any bad debt left after ADL exhausts those counterparties.
Risk
Treasury holds positions. It can lose money. The principal risks are:
- Inherited inventory. The Liquidator backstop takes positions at user entry prices. Mark can move against those positions before the backstop unwinds them. 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. 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 the Treasury master as bad debt.
- 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.
Roadmap
- Devnet (now): Treasury is an open community vault. We observe strategy performance, fee impact, and backstop behavior under live trading load with community capital alongside protocol capital.
- Mainnet: Treasury ships as an open vault from launch. We will publish any performance-fee schedule beforehand.