A circuit breaker is a mechanism that temporarily suspends continuous trading of a trading pair when the executed price exceeds a pre-defined threshold, to ensure fair and orderly trading.
Trading pairs listed in the AMM trading mode will have circuit breaker mechanisms prescribed through smart contracts that will trigger the circuit break event when the predefined threshold is exceeded.
AMM transactions and liquidity addition/removal are not permitted during the circuit breaker, which lasts between 15 and 30 minutes, depending on the trading pair. AMM transactions of the given trading pair that have not settled on the Ethereum network may also be canceled when the circuit breaker period kicks in.
Follow us on :
Comments
0 comments
Article is closed for comments.