> For the complete documentation index, see [llms.txt](https://peridot-finance.gitbook.io/peridot-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://peridot-finance.gitbook.io/peridot-protocol/technical-architecture/evm/dual-investment/settlementengine.md).

# SettlementEngine

Settles Dual Investment positions by reading oracle prices at/near expiry, calculating the winning side, executing payout in the correct pToken, and burning the position.

## Responsibilities

* Enforce settlement window after `expiry`.
* Fetch or cache settlement price (`SimplePriceOracle`).
* Compute winning pToken based on strike and direction; 
* payout 1:1 notional in winning cToken units.
* Withdraw/mint directly where possible; else withdraw from source and swap to target before minting.

## Key Functions

* `settlePosition(tokenId, user)`
  * Validates window, balance; gets price; determines winning cToken; burns position; executes payout via VaultExecutor.
* `batchSettlePositions(tokenIds, users)` best‑effort loop using internal helper to continue on failures.
* Views: `canSettlePosition(tokenId)`, `getSettlementInfo(tokenId)`.
* Admin: `setSettlementWindow(seconds)`, `emergencySetSettlementPrice(tokenId, price)`.

## Payout Path

1. Try `withdrawUnderlyingFromProtocol(payoutCToken, underlyingOutRequested)`; if >0, `mintCTokensTo(payoutCToken, user, withdrawn)`.
2. Else withdraw from source (`position.cTokenIn`), swap to payout underlying, then `mintCTokensTo` the user.