In Derivatives, How Does Immutability Secure the Settlement Process?

Immutability ensures that the pre-defined settlement logic ▴ the rules for calculating the payoff and transferring assets ▴ cannot be tampered with once the contract is active. For example, in a perpetual swap, the funding rate calculation remains fixed.

This guarantees that all parties know exactly how and when the final transaction will occur, eliminating counterparty risk and ensuring transparent, automatic execution.