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What Happens to Excess Collateral after a Smart Derivative Contract Is Settled?

Once the derivative contract's financial obligations are fully satisfied, the smart contract automatically releases any remaining or excess collateral back to the original depositor's wallet. The contract's code is designed to only disburse the exact required amount for settlement to the counterparty.

This automated return ensures a transparent and trustless closeout of the position without needing a manual reconciliation process.

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