Batch Finality Thresholds

Batch Finality Thresholds are the specific criteria that must be met before a bundle of transactions is considered permanently recorded on the mainnet. These thresholds are defined by the protocol to balance the trade-off between speed and security.

A lower threshold might allow for faster user experience but increases the risk of reorgs or failed settlements. A higher threshold ensures greater security but increases latency.

For financial derivatives, selecting the correct threshold is critical to ensure that trades are settled securely and cannot be reversed. It is a fundamental parameter in the protocol design.