Trading

Reserved Collateral

How the Backend prevents open Orders from spending collateral twice before they match.

Purpose

Reserved Collateral is tracked off-chain by the Matching Engine. It makes sure accepted open Orders remain executable against on-chain Market Collateral.

Required collateral

buyRequired = quantity * price
sellRequired = quantity - (quantity * price)

Release

Reserved Collateral is released when an Order expires or is cancelled. When an Order matches, it is converted into Position Collateral through Trade Execution.