To prevent market manipulation, trades are only allowed to happen within a fixed price interval.
The price interval is fixed around the current Mark Price and changes dynamically.
If the Last Traded Price moves quickly in one direction, and the movement is genuine, the Mark Price will follow.
If the movement is not genuine, the Mark Price will be unaffected.
To define whether the movement genuine or not, Mushino uses an index of prices from top Spot exchanges. This index makes up what is known as the Mark Price.
If the Last Traded Price on Mushino moves quickly in one direction, but the average of the prices on the Spot exchanges does not, there is a high chance of the movement being the result of a price manipulation.
The fixed price interval will mitigate the effects of this manipulation.
You can check the current interval at any time by opening the "Spec" tab in the trading interfacing.
What happens if I submit an order outside the interval?
If you submit a Long order with a price that is above the upper cap of the interval, the price will be scaled to the upper cap of the interval.
If you submit a Short order with a price that is below the lower cap of the interval, the price will be scaled to the lower cap of the interval.
Market orders with protection
The price intervals not only prevent market manipulation, but also offer protection for Market orders. When you submit a Market order, you can be certain that it will not execute outside the current price interval.
The part of the Market order that can be filled inside the interval will be filled, and the rest will turn into a limit order. The limit order will sit at the edge of the interval and can be cancelled at any time.