The Clearinghouse contract is the centre of the protocol and performs a number of key functions:
Maintains balances per account
Each account will have a balance of positions and collateral. The record of this is maintained by the clearinghouse contract.
Maintains all settings per market
Each of our markets will have a range of parameters that will be set by the DAO. The clearinghouse maintains the records of these parameters to ensure market function.
Arbiter on liquidation calculations
The clearinghouse is ultimately the arbiter for liquidation calculations. According to the market parameters on maintenance margin levels and the balances with each account, liquidator bots can call the clearinghouse contract to liquidate accounts that don't have enough collateral to maintain their positions.
Controls insurance pool
The insurance pool backstops the liquidation process, and as such falls under the control of the clearinghouse contract