Upcoming Adjustments to Order Dimension Limits | by Coinbase | Could, 2022

Tl;dr As a part of our aim to repeatedly enhance the buying and selling expertise and higher defend our prospects, we’re making adjustments to our market parameters on June 2, 2020 .

Min Order Dimension Limits: Simplifying with only a examine on notional

As crypto asset costs fluctuate, the bottom and quote order measurement limits on our Alternate can diverge in notional phrases. We attempt to sustain with the market by updating these limits frequently, however we understand the frequency of the adjustments can result in buyer confusion.

As a substitute of sustaining each base min order measurement and quote min order measurement, we’re altering our measurement limits to contemplate merely the notional worth of the order submitted to our change. Notional is outlined as order measurement (or amount, within the base forex) multiplied by order worth (or funds, within the quote forex).

For instance, think about the DOGE-USD market, the place the quote min order measurement is 1. Suppose a dealer submits the restrict order: “Buy 10 DOGE at a price no greater than $0.15”

Verify on notional: 10 * 0.15 = 1.5

Since 1.5 > 1, the order can be accepted.

Pursuant to this variation, we’ll deprecate the bottom min order measurement variable from our market parameters. We are going to preserve the quote min order measurement restrict because the examine on notional. The examine will apply to all orders the place funds within the quote forex are specified (e.g. restrict orders and market buys).

For API merchants, please notice that we are going to deprecate the usage of base_min_size in our /merchandise endpoint on June 2, 2022. On June 16, 2022, we’ll take away this variable from our endpoint. We are going to proceed to take care of min_market_funds, with the brand new logic checking notional measurement of the order.

Max Order Dimension Limits: Deprecating in favor of our dynamic PPP protections

We set our max order measurement limits on a per-order ebook foundation, contemplating depth of order ebook inside 500bps over current time intervals, as a way to defend our shoppers from submitting single large-sized orders that may transfer the market considerably. We assign greater max order measurement limits to order books which can be extra liquid. Nonetheless, these limits are static and order ebook depth (liquidity) can fluctuate.

In the meantime, our worth safety factors (PPPs) are a dynamic, real-time protection in opposition to vital worth actions brought on by a single order, and are set extra conservatively to protect in opposition to slippage than our max order measurement limits. Because of this, we consider our worth safety factors (PPPs) higher serve our shoppers and have determined to take away our static max order measurement limits.

We are going to deprecate the usage of our base max order measurement and quote max order measurement limits from our market parameters. API merchants ought to notice that base_max_size and max_market_funds on our /merchandise endpoint will now not be enforced on June 2. On June 16, 2022 we’ll take away these variables from our endpoint.