Position and Order Limits

Position Limit

The Position Limit is the maximum position size you can hold in a given market (in base asset units, e.g., BTC or ETH).

When you submit an order, TxFlow checks:

|Resulting Position Size| ≤ Position Limit

Where: Resulting Position Size = Current Position ± Order Size (depending on direction)

Scenario	Checks
Adding to existing position (same direction)	|Resulting Position Size| ≤ Position Limit
Reducing or closing a position (opposite direction)	Always allowed — reduces exposure
Reversing a position (flipping long ↔ short)	|Resulting Position Size| ≤ Position Limit

Order size limits

Parameter	Description	Example Value
Minimum order size	Smallest quantity allowed	0.001 BTC
Maximum market order size	Largest single market order	50 BTC
Maximum limit order size	Largest single limit order	100 BTC

Orders below minimum size will be rejected immediately.

Price limits for limit orders

To prevent erroneous or manipulative orders, limit order prices are bounded relative to the Oracle Price.

Buy (long) limit orders

Limit	Formula	Purpose
Price Cap	Oracle Price × (1 + Max Deviation %)	Prevent buying far above fair value
Price Floor	Oracle Price × 0.2	Prevent unrealistic lowball bids

Sell (short) limit orders

Limit	Formula	Purpose
Price Cap	Oracle Price × 5	Prevent unrealistic high asks
Price Floor	Oracle Price × (1 - Max Deviation %)	Prevent selling far below fair value

Dynamic Price Bands (Advanced)

For actively traded markets, TxFlow calculates tighter price bands based on recent premium:

Price Cap (Buy) = Min[Max(Oracle Price, Oracle Price * (1 + Y) + Average premium), Oracle Price * (1 + Z)]
Price Floor (Sell) = Min[Max(Oracle Price, Oracle Price * (1 - Y) + Average premium), Oracle Price * (1 + Z)]

Where:

• Y = Short-term deviation allowance (e.g., 2%)

• Z = Maximum deviation cap (e.g., 5%)

• Average premium = 2-minute moving average of (Mid Price - Oracle Price)

Slippage protection for market orders

Market orders are protected by a fixed 5% slippage tolerance (not user-configurable).

Order type	Acceptance Condition	if exceeded
Market buy	Execution Price ≤ Oracle Price × 1.05	Partially fill valid portion; cancel the rest
Market sell	Execution Price ≥ Oracle Price × 0.95	Partially fill valid portion; cancel the rest

Related Pages

Pages	Description
Margin Tiers	Maximum leverage by asset and position size
Order Types and Matching	Market, Limit, and advanced orders and matching mechanics
Liquidation	Detailed liquidation mechanics
Trading Fees	Trading and funding fees