Circuit Breaker
Security and stability
Circuit Breaker aims to protect Traders and FLP holders under temporary market fluctuations.
What is Circuit Breaker?
Circuit Breaker is designed to minimize the impact of market volatility on trading activity and protect users from significant losses. When triggered, Circuit Breaker will pause trading activity and prevent any new orders from being placed until market conditions stabilize.
When will Circuit Breaker be triggered?
Circuit Breaker will be triggered under two conditions:
Condition 1: Market volatility
Our keeper bot monitors individual token price in real time. When there is a 20% drop in price of token(s) within 5 minutes, Circuit Breaker will be triggered and applied to the affected token(s).
Condition 2: Imbalanced short-to-long open interest ratio
When a token's short open interest is over a set threshold, and if the ratio of short-to-long open interest is larger than a set value, Circuit Breaker will be triggered and users will not be able to open short positions on the token(s) temporarily.
See the table below for details:
Cronos
AAVE
USD 150,000
2
ADA
USD 150,000
2
ATOM
USD 150,000
2
BCH
USD 150,000
2
BTC
USD 200,000
2
CRO
USD 150,000
2
DOGE
USD 150,000
2
ETH
USD 200,000
2
HBAR
USD 150,000
2
LION
USD 150,000
2
LTC
USD 150,000
2
NEAR
USD 150,000
2
PAXG
USD 150,000
2
PENGU
USD 150,000
2
PEPE
USD 150,000
2
SHIB
USD 150,000
2
SOL
USD 150,000
2
SUI
USD 150,000
2
TRUMP
USD 150,000
2
UNI
USD 150,000
2
WIF
USD 150,000
2
XRP
USD 150,000
2
zkSync Era
BTC
USD 200,000
3
ETH
USD 200,000
3
ZK
USD 100,000
3
Cronos zkEVM
BTC
USD 200,000
2
vETH
USD 200,000
2
What will happen when Circuit Breaker is triggered?
Condition 1: Market Volatility
Trading activities of the affected pair(s) will be paused for 15 minutes. During the period:
You will not able to open new market order for the affected token(s)
You will not able to open new limit order for the affected token(s)
You will be able to close existing position for the affected token(s)
It has a predetermined time-out period for 15 minutes, after which it will be automatically lifted and trading activities will resume.
You will see the following pop-up for the affected trading pair(s):
There will be a manual feature to override the predetermined timeout period if it requires more time to implement a solution.
Condition 2: Imbalanced short-to-long open interest ratio
Opening short position on the affected trading pair will be prohibited until the triggering conditions are not longer satisfied.
How will this benefit me as a Fulcrom user?
As a Trader
When token price drops for 20% in 5 mins, there is a high chance that the price spread is large, causing users to accidentally open trade or swap tokens at an unfavourable price.
Circuit Breaker protects traders from sudden and drastic price movements. They provide a temporary halt in trading, which allows investors to regroup, evaluate their strategies, and make more informed decisions. This helps prevent investors from making rushed or emotionally-driven trades during highly volatile market conditions.
As a FLP holder
Circuit Breaker will help stabilize FLP status from market volatility and prevent the liquidity on our FLP pool to be drained away.
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