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Tl;dr As part of our goal to continually improve the trading experience and better protect our customers, we are making changes to our market parameters on June 2, 2020 .

Min Order Size Limits: Simplifying with just a check on notional

As crypto asset prices fluctuate, the base and quote order size limits on our Exchange can diverge in notional terms. We try to keep up with the market by updating these limits on a regular basis, but we realize the frequency of the changes can lead to customer confusion.

Instead of maintaining both base min order size and quote min order size, we are changing our size limits to consider simply the notional value of the order submitted to our exchange. Notional is defined as order size (or quantity, in the base currency) multiplied by order price (or funds, in the quote currency).

For example, consider the DOGE-USD market, where the quote min order size is 1. Suppose a trader submits the limit order: “Buy 10 DOGE at a price no greater than $0.15”

Check on notional: 10 * 0.15 = 1.5

Since 1.5 > 1, the order will be accepted.

Pursuant to this change, we will deprecate the base min order size variable from our market parameters. We will maintain the quote min order size limit as the check on notional. The check will apply to all orders where funds in the quote currency are specified (e.g. limit orders and market buys).

For API traders, please note that we will deprecate the use of base_min_size in our /products endpoint on June 2, 2022. On June 16, 2022, we will remove this variable from our endpoint. We will continue to maintain min_market_funds, with the new logic checking notional size of the order.

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

We set our max order size limits on a per-order book basis, considering depth of order book within 500bps over recent time periods, in order to protect our clients from submitting single large-sized orders that would move the market significantly. We assign higher max order size limits to order books that are more liquid. However, these limits are static and order book depth (liquidity) can fluctuate.

Meanwhile, our price protection points (PPPs) are a dynamic, real-time defense against significant price movements caused by a single order, and are set more conservatively to guard against slippage than our max order size limits. For this reason, we believe our price protection points (PPPs) better serve our clients and have decided to remove our static max order size limits.

We will deprecate the use of our base max order size and quote max order size limits from our market parameters. API traders should note that base_max_size and max_market_funds on our /products endpoint will no longer be enforced on June 2. On June 16, 2022 we will remove these variables from our endpoint.

Upcoming Changes to Order Size Limits was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

One thought on “Upcoming Changes to Order Size Limits

  1. A little bit of a backstory. I entered Axie Infinity around March of 2021. Right before the big run up that took SLP(the coin that you earn from playing the game). I entered it because I was intrigued by the idea that you can earn from playing a game and not to mention that it's on the blockchain, as well.

    I immediately bought 3 axies. I spent $500 Canadian dollars, in total. I started to learn the ins and outs of the game. Talked with fellow players and just had fun earning SLP.

    Fast forward a month from then and I came across “scholarship programs”. It was basically a way for you to lend someone who doesn't have the capital to play an account for you. In exchange, you pay them a portion of what they earned. I thought to myself, Hey, I get more money in the long run if I played and reinvested the earnings into buying more axies. So I did that, and bought 3 more axies off of the earnings.

    I was able to get my cousin, my wife, my wife's mom, 2 friends an account each to play on. I didn't take any money off of the game. My scholars were able to withdraw money from SLP's All time highs. I was happy that I was able to help and have fun at the same time.

    Fast forward to today, SLP is close to it's all time low. The same managers that were lending out accounts to scholars(people who play accounts filled with three axies and earn a cut of the earnings from it) are now having a hard time filling out those same scholarship accounts because of how low the value has gotten.

    So I thought to myself, let's create a poll to see how many managers are still holding their axies and SLP hoping for better days.

    Here's the result of the poll: 11.7% are holding slp but sold axies 16.4% hold axies but sold slp 45.1% hold axies and slp 17.3% sold both slp and axies 0.6% switched to breeding axies 8.57% sold all scholar axies but manager is still playing

    Conclusion: A lot of people are still waiting for SLP to go up but at this point. It will be really hard for SLP to bounce back up. It's supply is around 40B and it'll take a hell of a burn mechanic to reduce the supply and make SLP bounce back up.

    I don't regret taking this route as I was able to help a lot of people(in my opinion). I was only able to profit about $150 USD from playing for about 1.5 years. But I had fun getting to know a bunch of people.

    If you reached this far, thank you for reading. I sincerely hope the best for your investments.

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