To protect user interest and avoid unintended price volatility, SynFutures imposes below restrictions, which would not affect normal users but mainly be triggered when there’s large movement in a single block or from a single user.

Max Price Slippage Ratio: maximum price deviation in a single block for either direction from the mid-price at the start of the current block. This serves as a limit of price slippage for the AMM and protects the system from attacks distorting the market within the same block. A trade would be reverted if it results in a price breaching this limit of this block.

Max Initial Daily Basis: maximum deviation of initial futures price to spot index per day to limit the initial price for AMM in a reasonable range.

Max User Trade Open Interest Ratio: maximum open interest ratio of the entire market for a single user(address) to prevent concentration of risk in a single account. When a user's account has a higher open interest ratio than this limit, the user can only execute trades to reduce position but not increase position. This limit does not apply to the action of LP adding liquidity to the AMM. But if an LP's position breaches the limit after adding liquidity to the AMM, they cannot increase their position further through trade.

Min Amm Open Interest Ratio: minimum open interest ratio of the entire market for the AMM to prevent a drain of liquidity. The AMM needs to maintain a certain level of inventory to prevent large slippages as every user can only trade with the AMM. This limit applies to both users buying from the AMM and LPs removing liquidity.

Max Spot Index Change Per Second Ratio:maximum spot index change that can be accepted since the last update, measuring in seconds. As mark price is updated at most once per block, this serves as a limit of the mark price change per block and protects the system from attacks distorting the underlying Oracle in a short period of time.

Did this answer your question?