Docs · Core concepts
The book
Committed bids on a tick grid: how depth is placed, priced and consumed.
The book is a set of ticks: price levels carrying committed quote-side depth. A bid at price p is a binding commitment to buy the base asset at p — it is not a quote, and it cannot be faked, because the capital is escrowed in the market when the bid is placed.
Definitions
B(p) — committed depth at tick p, in quote
D(p) = Σ B(q) for q ≥ p — cumulative depth at or above p
F = max{ p : B(p) > 0 } — the floor: the best committed bid
buffer = (M − F) / M — distance from mark M down to the floor
D(p) = Σ B(q) for q ≥ p — cumulative depth at or above p
F = max{ p : B(p) > 0 } — the floor: the best committed bid
buffer = (M − F) / M — distance from mark M down to the floor
The floor is the protocol’s core object: the highest price at which real capital stands ready to absorb the asset. Everything above it is unfunded price; everything at or below it is funded.
- Placement — any address can commit at any tick strictly below the current mark.
- Priority — execution consumes ticks best-first; within a tick, pro-rata.
- Withdrawal — unborrowed depth withdraws freely; depth backing open loans is locked until those loans resolve.