Liquidity Provider Preferences - Multi-Collateral
There are two sets of preferences that PAS participants can specify:
- •general preferences: these are the acceptable high level conditions that a LP has for receiving assignments. They include: Time of week (Weekend, Weekdays), Contract pair (PF_BTCUSD, PF_ETHUSD)
- •risk preferences: these are the specific size constraints a liquidity provider states they are comfortable with if an assignment meets their general preferences.These are applied on the contract level. They include: Max Per Assignment Size, Max Post-Assignment Position Size, and WEEKDAYS/WEEKENDS
- •directional preference: this specifies whether you want to receive assignments that are LONG or SHORT, or both LONG and SHORT.
- •Note: there is NO price consideration allowed on these preferences.
- •Multi-collateral contract preferences are denominated in USD and use the same multi-collateral margin wallet.
Example: as a liquidity provider you want:
Contract Pair | Max Assignment Size | Max Position Size Post-Assignment Per Contract |
|---|---|---|
PF_BTCUSD | 400,000 USD | 2,000,000 USD NET LONG or SHORT PF_BTCUSD contracts |
PF_ETHUSD | 150,000 USD | 1,000,000 USD NET LONG or SHORT PF_ETHUSD contracts |
PF_SOLUSD | 200,000 USD | 1,000,000 USD NET LONG or SHORT PF_SOLUSD contracts |
Liquidity providers are NOT allowed to specify ANY price preferences in the program. Liquidity providers may ONLY be passive in the PAS, in such a way that the only preferences are about quantity to manage the limits.
Assignments always occur at best execution and are a last resort mechanism to provide an orderly market, only done after liquidation in the orderbooks fills any open orders at better prices than the 0 equity point of the undercollateralized trader.
See an example here.
Click on the sections below to view steps to manage your Assignment preferences