price/slippage protection parameters

[mesozoic-technology]

When a user takes out a position, our t+1 architecture introduces a time period where the price can move from what they meant to lock in on.

What does this mean for price protection parameters? Are they important? Does Overlay require them?

Discuss.

[mikeyrf]

Yea in practice, it might not be a huge problem for TWAP markets, since a 1% move sustained over a 10 min update period translates to a 1/6% move in the 1h TWAP value. So slippage here won't be super extreme, since dampened by the averaging.

For faster markets, it definitely becomes a problem. We'll want to make T+1 settlement super clear UI wise as well.