Order Types

This section provides a detailed explanation of the various order types supported by our platform, as well as the processes and requirements associated with each. You can also read more about order types here.

Prerequisites

• Initial Deposit: To initiate any limit order, traders must first ensure they have adequate funds by making an on-chain deposit. This preliminary step confirms the availability of necessary capital to execute potential trades.

• Creating an Order: Following the successful confirmation of the deposit, traders are empowered to place limit orders. These orders are recorded on the blockchain, awaiting a counterpart.

• Matching Orders: The arrival of a complementary market order triggers the execution of the on-chain limit order, resulting in the exchange of assets at the agreed price.

• Margin Maintenance: It is imperative for traders to maintain sufficient margin for their active orders. This can be managed through a pre-deposit or by opting for atomic deduction at the time of order placement.

Market Orders

These orders are executed instantly at the most favorable current price. When a market order comes in, the matching engine:

• Reviews the order size and current liquidity. Proceeds to match the order against existing limit orders on the orderbook or utilizes AMM liquidity if direct matches are not available. This is done through a systematic approach until the entirety of the order is satisfied. Market orders may comprise various sub-trades that combine both orderbook and AMM executions.

Limit Orders

Limit orders set a fixed price for buying or selling, placed into the Decentralized Limit Order Book (DLOB). They await execution when a market order or another limit order intersects with their specified price point. These are strictly on-chain, enhancing transparency and reliability.

Conditional Orders

Conditional orders are unique orders that become active under specific market conditions, such as Stop-Loss and Take-Profit orders:

• Stop-Loss Orders: These limit potential losses by executing the trade if the market dips to or below a pre-set trigger price.

• Take-Profit Orders: Conversely, these secure earnings by executing the trade when the market value climbs to or above a pre-set trigger price. These orders, once the predefined conditions are met, are executed on-chain by a network of keepers. They are treated akin to market orders post-execution, following the logic of the matching engine to pair with DLOB or AMM liquidity.