💹Perps Order Types & Matching

Market Orders

Trade with the Monday Trade perps engine directly. The counterparty can either limit orders or concentrated liquidity.

• Price Impact: The estimated change of price after this trade.

• Limit Price: The maximum price for a buy trade/The minimum price for a sell trade.

• Trading Fee: The fee paid for the trade. Please refer to the Contract Specification section.

• Execution Fee: A mechanism to protect liquidity providers. Please refer to the Security section.

Limit Orders

Monday Trade Perps Engine enables native limit orders similar to those in centralized limit order book systems. These orders are defined at discrete price points and become irreversible once filled, providing makers with certainty regarding the status of their limit orders.

Matching and Overall Pricing Mechanism

To circumvent current smart contract limitations, order matching in the Monday Trade Perps Engine does not follow the traditional centralized limit order book (CLOB) model based on the first-in, first-out (FIFO) principle. Instead, it employs a matching process optimized for onchain efficiency and fairness. The characteristics of this matching and pricing mechanism can be summarized as follows:

• At a price point where limit orders exist, those orders are filled before any concentrated liquidity is consumed. Concentrated liquidity becomes prominent for long-tail assets.

• Trade volume is allocated proportionally across multiple limit orders resting at the same price, supporting just-in-time limit order creation.

• Overall slippage is significantly reduced when limit orders exist along the engine’s price curve.

Admissible Limit Order Price

The Monday Trade Perps Engine adopts a tick-based pricing system, where each tick corresponds to a price increment of 1.0001ⁿ. For limit orders, the price granularity is set to 1 tick, meaning admissible limit order prices follow the structure: 1.0001¹ⁿ, where n is an integer.

This design ensures precise, standardized price intervals that facilitate efficient on-chain order management and matching

Execution Fees

Once an order is filled, the Monday Trade Perps Engine allows any address to submit a transaction on-chain to convert the filled order into a position, completing the settlement process. This mechanism does not alter ownership of the filled order or resulting position.

An execution fee is paid to the transaction sender as compensation for the associated gas cost. Please refer to the Pair Specification section for further details.