On Seed Market and Seed SEF, Participants can trade on margin. That is, a Participant can open a position with a notional value larger than the total Available Balance they have on hand. To open any position, a Participant must have sufficient Available Balance in their account to cover the Initial Margin requirement for the Transaction.
Zero Hash acts as the Calculation Agent for Initial Margin requirements per Contract traded on both Seed Market and Seed SEF. Once calculated, the figure is fed into each marketplace's risk systems to ensure that no trades are executed without sufficient backing.
All Initial Margin obligations must settle by T+1. That is, Participants must post or collect Initial Margin to cover open positions on or before the business day after execution.
Zero Hash runs a daily compression algorithm for all participants to reduce outstanding Transactions, whilst maintaining the same risk profile. Capital efficiency is therefore optimized.