• Fair Mark Pricing: As discussed, Roxom uses a Mark Price derived from external indices for all margin and liquidation calculations. This isn’t exactly a “control” on trades, but it’s a fundamental risk principle: traders are not liquidated or margined off possibly manipulated last prices.
  • Price Band Limits (Pre-Trade): To avoid absurd or fat-finger prices, Roxom sets price bands around the current market price for each contract. By default, no order can be placed more than ±50% away from the current Mark Price of the contract. If a user submits an order with a price beyond these bands, the system will automatically reject it. (Each contract can have its own band threshold; 50% is the default. Specific instruments might have tighter bands specified in their specs).
  • Maximum Order Size (Pre-Trade): Roxom imposes a limit on the size of any single order to prevent an individual order from being so large that the market cannot safely absorb it. If a user tries to place an order larger than the allowed cap, the system will reject it. The specific order size caps are calibrated per instrument liquidity and can be adjusted by Roxom’s risk committee as needed. At launch:
    • Market Order Size Cap: 0.5 BTC notional per single market order, and the trade is limited by the slippage impact cap (as per instrument specs) as described earlier. Essentially, a market order will not execute more than 0.5 BTC worth, or beyond 2% price impact, whichever condition hits first. This prevents a single market order from consuming too much order book depth.
    • Limit Order Size Cap: 2.5 BTC notional per single limit order. Roxom allows a higher cap for limit orders since they add liquidity rather than taking it. A large limit order does not immediately move the market; in fact, it can help stabilize the order book by providing depth. But to manage risk, it’s still capped at 2.5 BTC per order.