Dynamic Circuit Breaker

In times of high volatility, due to black swan events or unexpected real world events, the exchange will limit trading on virtual assets and wait for the volatility to subside before allowing normal trading over such assets.

We monitor market volatility by comparing the reported price to the exponential moving average (EMA) reported by Pyth’s oracles. If the difference between these prices exceeds a predefined threshold, the High Volatility Flag is set for the said asset. If it exceeds a greater threshold, then Close Only mode will be active restricting all interactions except liquidations, closing position, and removing liquidity.

Thresholds for "High Volatility Flag"

• Crypto: 2% difference between EMA and Spot.

• Metals: 0.66% difference between EMA and Spot.

• Currencies: 0.33% difference between EMA and Spot.

Thresholds for "Close Only Mode"

• Crypto: 5% difference between EMA and Spot.

• Metals: 1.1% difference between EMA and Spot.

• Currencies: 0.55% difference between EMA and Spot.

More info to be added!