Order Types

Velocity supports market and limit orders, the conditional trigger, oracle limit, and scale order types built on top of them, and a set of order flags that can be combined with any of them.

Market Orders

A Market Order is an order to buy or sell an asset immediately at the current Market Price.

Users can set a maximum slippage tolerance. A slippage tolerance sets an upper bound for the price that the order can be filled at, which is effectively a limit price versus the current market price.

For instance, if the mark price of SOL-PERP is $100.00 and a user goes long, a user can set a maximum slippage tolerance of 0.1%. As such, the worst price that a user can fill at is $100.10. The order will fail if the quoted price exceeds the limit price (with slippage tolerance) for takers.

Market Orders trigger a Dutch auction, where the order’s price walks from the auction start price to the auction end price over the auction duration. The duration is set by the client and floored on-chain: the program takes the wider of the client-requested duration and a spread-derived minimum that scales with the market’s contract tier.

The auction is not the only way a Market Order gets filled. Both during the auction and after it ends, the order can be filled from any of three sources of liquidity, whichever satisfies the order’s price at that moment:

• Just-in-time (JIT) liquidity: a market maker places a maker order for the specific purpose of filling your order.

• Resting liquidity: a keeper matches your order against limit orders already sitting on the decentralized orderbook.

• Backstop liquidity: Velocity’s AMM.

The AMM is not a pure last resort that only steps in when no market maker does. At each price level, the matching engine compares the AMM’s quote against the best available maker price and fills against whichever is better, so one Market Order can fill partly against makers and partly against the AMM. See Matching Engine for the full ordering rules.

Whichever source fills the order, it can only fill at a price within your slippage tolerance.

Executing a Market Order does not mean the order will execute at exactly the price displayed, as the mark price of an asset may change before the order is filled.

Maker orders can be enforced using Limit orders with a ‘Post’ flag. See Trading Fees and Advanced Orders FAQ for more information.

Limit Orders

A Limit Order is an order to buy or sell a given asset at a price you specify. If or when the mark price crosses your Limit Price, the order partially fills up to that price every time a keeper executes it, and for taker orders your resulting Entry Price is guaranteed to be equal to or better than the Limit Price.

These orders are executed by a decentralised network of keepers, see Decentralised Orderbook FAQ, once the mark price crosses the specified trigger or limit price. At fill time, a limit order can be matched peer-to-peer against another resting maker order or filled against Velocity’s AMM, whichever the keeper network determines is best for the fill. Execution is ‘best effort’, with economic incentives designed to mimic the execution ordering seen in a Centralised Limit Order Book (CLOB).

With the Post flag set, the order fills at your specified limit price and earns a maker rebate: a flat rate set by the maker’s fee tier (currently 0.0025% of the filled notional in every tier), carved out of the taker’s fee on a peer-to-peer match, or out of the AMM’s spread surplus when the post-only order fills against the AMM. The filler who submits the fill is paid separately, the lesser of 10% of the fee and a reward that grows with the order’s age, with no fixed bps cap.

Trigger Orders

Trigger Market

A market order that activates when the trigger price condition is met. Used for Stop Loss (Stop Market) and Take Profit orders.

• Triggers on the configured reference price (see trigger mechanics below).
• Once triggered, it behaves like a market order.

Trigger Limit

A limit order that activates when the trigger price condition is met. Used for Stop Limit and Take Profit Limit orders.

• Lets you specify trigger price and limit price separately.
• Fill is not guaranteed if the market trades through and never touches the limit.

Trigger Order mechanics

Trigger orders (Stop Market / Stop Limit / Take Profit Market / Take Profit Limit) activate when a trigger reference price crosses the trigger price you set.

The trigger reference price is not the raw oracle price. It is the median of three values, which keeps a stop or take profit from firing on a move in any single price source:

• Oracle Price Adjustment: Oracle Price + (Mark Price 5min TWAP − Oracle Price 5min TWAP)
• Last Trade Price, the last fill price, but only while it is fresh (within 5 minutes). If there is no fill yet, or the last fill has gone stale, the oracle price stands in for this leg, so the reference price is always a median of three values.
• Oracle Price with Funding Adjustment, Oracle Price + Funding Basis, where the funding basis is derived from the last funding rate (normalized by its oracle TWAP, annualized, and adjusted by the protocol’s funding-rate offset), then decayed linearly to zero over the course of one funding period.

For example, if the three values are 100.2, 100.5, and 100.1, the median 100.2 is used. The median is then clamped to a band around the oracle price so it can never drift too far from it: 20 bps for the most volatile contract tiers (A/B), 100 bps for tier C, and 250 bps for all other tiers.

Oracle Limit

An Oracle Limit Order allows you to specify an offset rather than limit price to execute your order. The offset represents the price above/below the current Oracle Price you want to be filled at. It’s important to note that these orders can fill at any time the offset is met, so long as the account collateral is sufficient.

The offset is signed, so its direction sets how aggressive the order is:

Example

SOL-PERP’s oracle price is $100.00 and you want to go long, but only at $0.50 below oracle. Instead of a fixed limit price of $99.50, you place an Oracle Limit buy with an offset of -$0.50.

The order does not store $99.50. It stores the offset, and the effective limit price is recalculated from the current oracle price on every fill attempt:

This is the difference from a fixed limit order. A fixed $99.50 buy stays at $99.50, so if the oracle climbs to $102.00 the order is left far below the market and stops filling until price comes back down. The Oracle Limit order tracks the oracle up to $101.50 and keeps working, holding your $0.50 discount to oracle the whole way.

The same property cuts both ways. If the oracle falls to $97.00, your bid follows it down to $96.50 rather than filling at $99.50, so you keep the discount but you are no longer bidding the price you originally saw.

Scale

Submit multiple limit orders across a user‑defined price range to build or unwind a position gradually. All of them are placed in one instruction and all of them rest on the book, nothing fills at placement.

• You define the range (start price and end price), the number of orders (minimum 2, maximum 32), and the size distribution.
• The range must run away from the market in the direction you are scaling: a long ladder needs start price above end price (buying down), a short ladder needs start price below end price (selling up).
• Prices are spaced evenly across the range, and the last order sits exactly on the end price.
• Reduce-only, post-only, and expiry settings apply to every order in the ladder.

The 32-order limit is also the maximum number of open orders an account can hold, so a ladder only fits if the account has that many free order slots. Developers: see Scale Orders in the SDK for the exact parameters and precisions.

Order flags

These flags can be combined with the order types above.