Paradigm has both Taker Execution Limits, Taker Market Creation Limits, as well as a Market Maker Protection program to enable fair and reasonable price formation across our products.
Taker Execution Limits limit the number of times Takers are able to execute RFQs in a rolling time window. Presently, this is 1 execution within a 2-second rolling window per product. This applies to both our MDRFQ & GRFQ products, but not FSPD.
Taker Market Creation Limits limit the number of RFQs and Order Book markets users are able to create in our MDRFQ & GRFQ products. Presently, users are able to create 1 market every 3 seconds on a rolling basis per product.
Market Maker Protection ensures Makers are protected from rapid executions in the market. When triggered, this protection cancels all of a desks’ outstanding Quotes and Orders as well as prevents further Quotes from being created. Presently, this protection is triggered when 2 executions occur within a 1-second rolling window upon the Maker’s Quotes/Orders per product. This applies to both MDRFQ & GRFQ products, but not FSPD.
You are able to read more in our API documentation.