Position Limit defines the maximum position size you can hold for a given market (in base asset units, e.g., BTC or ETH).
How It Works
When you submit an order, TxFlow checks:
|Resulting Position Size| ≤ Position Limit
Where:
Resulting Position Size = Current Position ± Order Size (depending on direction)
Order Size Limits
💡 Tip: Orders below minimum size or notional value will be rejected immediately.
Price Limits (Limit Orders)
To prevent erroneous or manipulative orders, TxFlow restricts limit order prices based on the Oracle Price.
Buy (Long) Limit Orders
Sell (Short) Limit Orders
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 (Market Orders)
Market orders are protected by a slippage tolerance to prevent execution at unfavorable prices.
Current Slippage Tolerance: 5% (not user-configurable)
