# US 12,602,692 B2 · Systems and methods for decreasing counterparty settlement risk

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- Number: US 12,602,692 B2
- Document ID: US12602692B2
- Status: Granted
- Kind: B2
- Application number: 18/515,776
- Filed: 2023-11-21
- Published: 2024-03-14
- Granted: 2026-04-14
- Earliest claimed: 2022-05-23
- Assignees: MARA Holdings, Inc.
- Applicants: MARA Holdings, Inc.
- Inventors: Ashu Swami
- Web page: https://patentgrep.com/patent/US12602692B2

## CPC

- G06Q 20/4016: {involving fraud or risk level assessment in transaction processing}
- G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
- G06Q 20/065: {using e-cash}
- G06Q 20/3827: {Use of message hashing}
- H04L 9/50: {using hash chains, e.g. blockchains or hash trees}
- G06Q 2220/00: Business processing using cryptography
- H04L 2209/56: Financial cryptography, e.g. electronic payment or e-cash
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- H04L: TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION (arrangements common to telegraphic and telephonic communication H04M)

## Abstract

Apparatus, systems and methods improve efficiency in transacting a swap or other futures based financial instrument, by using time-weighted index averages to decrease counterparty settlement risk. In preferred embodiments related to Bitcoin and several other cryptocurrencies, the swaps are based upon a time-weighted index average (Dwa) of multiple instances of difficulty (Dx to Dy) of mining the cryptocurrency over multiple time periods (Px to Py) where both Ds and Ps are available from the decentralized public blockchain. Traders can use these time-weighted index averages in conjunction with the anticipated values of Ds and Ps for the remainder of the duration of the index, to calculate the index value at any given time. The index can be used to increase or decrease mining of digital assets, or switch allocation of resources between mining different digital assets.

## Claims

### Claim 1

A method of managing energy usage of computers involved in mining digital assets, comprising:
producing an index tracking a time-weighted average (Dwa) of multiple instances of difficulty (Dx to Dy) of mining a first digital asset over multiple time periods (Px to Py), where x is at least 1 and y is at least 2, and wherein the difficulty of mining the first digital asset is proportional to a global hashrate of the first digital asset; and
providing an electronic miner of the first digital asset access to the index, wherein the electronic miner manages a hardware resource configured to mine digital assets;
the electronic miner changing an allocation of the hardware resource mining the first digital asset to reduce energy consumption based at least in part on the index.

### Claim 2 (depends on 1)

The method of claim 1, further comprising determining an operating cost of the hardware resource over multiple time periods (Px to Py).

### Claim 3 (depends on 2)

The method of claim 2, wherein the electronic miner reduces allocation of the hardware resource mining the first digital asset when the index increases or the operating cost increases.

### Claim 4 (depends on 2)

The method of claim 2, wherein the electronic miner deploys an additional hardware resource when the index decreases or the operating cost decreases.

### Claim 5 (depends on 2)

The method of claim 2, wherein the electronic miner conducts physical maintenance of the hardware resource when the index increases or the operating cost increases.

### Claim 6 (depends on 2)

The method of claim 2, further comprising determining a value of the first digital asset, wherein the electronic miner stops the hardware resource from mining of the first digital asset when either the index or the operating cost outweigh the value.

### Claim 7 (depends on 1)

The method of claim 1, wherein the electronic miner reduces energy consumption of the hardware resource when the index increases or the operating cost increases.

### Claim 8 (depends on 1)

The method of claim 1, wherein the electronic miner switches the hardware resource from mining the first digital asset to mining a second digital asset when the index increases.

### Claim 9 (depends on 1)

The method of claim 1, further comprising the electronic miner upgrading a performance improving component of the hardware resource when the index increases or the operating cost increases.

### Claim 10 (depends on 1)

The method of claim 1, further comprising providing a portal through which a financial instrument is traded based at least in part on the index.

### Claim 11 (depends on 10)

The method of claim 10, wherein the financial instrument comprises a futures contract or a cash settled futures contract.

### Claim 12 (depends on 10)

The method of claim 10, further comprising applying a component of the hardware resource as collateral to the financial instrument.

### Claim 13 (depends on 1)

The method of claim 1, wherein the first digital asset is a cryptocurrency.

### Claim 14 (depends on 13)

The method of claim 13, wherein each of the multiple instances of difficulty (Dx to Dy) are calculated as a period function of the global hashrate of the cryptocurrency.

### Claim 15 (depends on 1)

The method of claim 1, wherein the time-weighted average of difficulty Dwa is a function of (Px/Dx+Px+1/Dx+1+Px+2/Dx+2 . . . +Py/Dy)/(Px+Px+1+Px+2 . . . +Py), wherein each D is a calculated mining difficulty during a corresponding time period P.

### Claim 16 (depends on 15)

The method of claim 15, wherein at least one of the time periods (Px to Py) is a consecutive block of 24 hours.

### Claim 17 (depends on 15)

The method of claim 15, wherein the function provides a heavier weight to higher values of x.

### Claim 18 (depends on 1)

The method of claim 1, wherein changing an allocation of the hardware resource mining the first digital asset comprises turning off a hardware component.

### Claim 19 (depends on 1)

The method of claim 1, wherein changing an allocation of the hardware resource mining the first digital asset comprises pausing a hardware component.

### Claim 20 (depends on 1)

The method of claim 1, wherein changing an allocation of the hardware resource mining the first digital asset comprises resuming a hardware component.