ReSource
  • Welcome
    • Introduction
    • Protocol Architecture
  • Stable Credit
    • Stable Credit Lifecycle
    • Credit Risk
      • Overview
      • Risk Prediction and Mitigation
      • Underwriting
      • Network Assurance
      • Network Debt Account
      • Default Management
        • Obligation enforcement
    • Soft Peg
    • Stable Credits <> Fiat Loans
      • The Credit Pool
      • The Launch Pool
    • Configurability
  • Inter-Network Trade
    • Inter-Network Trade
      • Inter-Network Clearing House
      • How inter-network trade is facilitated
      • Export Risk
      • Export Risk Mitigation
        • Import Fee Structure
        • Import Fee Proceeds
        • Import/Export Limits
      • Varying Reference Currencies
  • Contracts
    • StableCredit.sol
    • AccessManager.sol
    • FeeManager.sol
    • AssurancePool.sol
    • CreditIssuer.sol
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  1. Inter-Network Trade
  2. Inter-Network Trade

Export Risk Mitigation

In order to minimize export risk the following have to be achieved:

  1. Incentives need to be set to drive the market to prefer trades which decrease participating network’s trade imbalances.

  2. Funds need to be reserved in order to clear and settle imbalances that could not have been settled through the mutual clearing of imports and exports.

Both of these goals are achieved through the Clearing House’s fee structure. Additionally, the Clearing House sets import/export limits for each participating network in order to ensure that trade imbalances remain within tolerable margins.

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Last updated 2 years ago