Pledge Collateral

Pledge collateral is a separate collateral pool that PartyBs deposit as a guarantee of good behavior. It is independent of the trading collateral used for positions and serves as a "skin in the game" mechanism — if a PartyB acts maliciously (e.g., abuses ADL by closing positions at unfair prices), their pledge can be slashed by an admin.

Depositing

Any PartyB can deposit pledge collateral in any ERC20 token. Amounts are in the token's native decimals.

pledgeFacet.depositPledge(tokenAddress, amount);

Withdrawing

Withdrawal follows a two-step request-approval flow to prevent rug-pulls:

// 1. PartyB requests withdrawal
pledgeFacet.requestPledgeWithdraw(tokenAddress, amount, recipientAddress);

// 2. Admin approves withdrawal (requires PARTY_B_MANAGER_ROLE)
pledgeFacet.acceptPledgeWithdraw(partyBAddress, amount, tokenAddress);

// Or PartyB can cancel their own request
pledgeFacet.cancelPledgeWithdraw();

Slashing

If a PartyB misbehaves, an admin with PARTY_B_MANAGER_ROLE can slash their pledge collateral and redirect it to any recipient: 

pledgeFacet.slashPledge(partyBAddress, tokenAddress, penaltyAmount, recipientAddress);

Relation with ADL

Pledge collateral is primarily used as a penalty mechanism for ADL (Auto-Deleveraging) usage. Before enabling ADL for a PartyB, they should have deposited sufficient pledge collateral. If ADL is misused — e.g., closing positions at prices that unfairly harm PartyA — the pledge can be slashed. This ensures PartyBs are incentivized to use ADL fairly.