Apex Docs
  • Overview
  • How it works
    • The Basics of Perpetual Futures and Perpetual Protocol
    • APEX Limit Order Design
    • Comparison with order book exchanges
  • User Guide
    • Add xDai Chain to Your Wallet
    • Acquiring xDAI tokens
    • Getting USDC on xDai
    • Interacting with xDai
    • Spawn your smart wallet
    • Funding your smart wallet
    • Approve Spend
    • Fees
    • Creating Orders
      • Creating Limit orders
  • Order Types
    • Understanding Slippage
    • Market Orders
    • Limit Orders
    • Stop Orders
      • Stop Market
      • Stop Limit
      • Stop Market vs Stop Limit
      • Trailing Stop Orders
  • Developer Guide
    • Smart Contracts
      • Limit Order Book
      • Smart Wallet Factory
      • Smart Wallet
    • Keeper Bots
      • Overview
      • Running your own bot
      • Documentation
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  1. How it works

Comparison with order book exchanges

Perpetual Protocol is an AMM-based DEX, making trading somewhat different from the traditional order book exchange model seen in traditional finance and early Ethereum DEXs.

Makers and Takers

Every trade is made with the Perpetual Protocol vAMM as the maker. However, there are no additional fees for trading as a taker.

This is one of the nice features about the vAMM model (and what makes our limit orders different to orders on other sites). If you place a limit order to buy 1 ETH at $2000, then you will be the taker and the vAMM will be the maker.

Functionally, with a vAMM a limit order to buy 1 ETH at $2000 is the same as saying "Place a market order for 1 ETH only when the price is below $2000." So it is quite likely that you actually get a better price than your order asked for.

Example

If ETH drops from $2001 to $1950 suddenly (ie. in 1 block), then Apex will execute your order at the current price of $1950.

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Last updated 4 years ago

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