Business Logic

Business logic encompasses the core rules and algorithms that define how a derivative protocol operates, such as calculating margin requirements, determining liquidation thresholds, or managing order matching. This logic must be rigorous, transparent, and secure, as it directly influences the financial outcome of every trade.

In the context of upgradeability, business logic is isolated within the implementation contract to allow for continuous improvement. As market conditions shift or new derivative instruments are created, the business logic can be updated to reflect these changes, ensuring the protocol remains competitive and robust against market volatility and adversarial behavior.