Safety Price Limits
Hyperodd enforces safety price limits to protect traders from price manipulation and erratic mark price behavior. These limits constrain how far the mark price can deviate from the external oracle (spot) price.
The Rule
Section titled “The Rule”The mark price cannot move more than ± (1 / max leverage) away from the most recent external oracle price.
max deviation = ± (1 / max leverage)For example, on a market with 20× max leverage, the mark price is capped to stay within ±5% of the last external oracle price.
| Max Leverage | Max Mark Price Deviation |
|---|---|
| 5× | ±20% |
| 10× | ±10% |
| 20× | ±5% |
| 40× | ±2.5% |
| 50× | ±2% |
This constraint applies in all sessions — both normal trading hours and off-hours.
Why It Matters
Section titled “Why It Matters”The mark price is used to calculate unrealized PnL, trigger liquidations, and settle funding payments. If the mark price could freely diverge from the oracle price, bad actors could manipulate it to cause artificial liquidations or distort funding rates.
By capping the deviation relative to leverage, the limit scales appropriately: higher-leverage markets (where small price moves have larger impact) have tighter constraints, and lower-leverage markets allow wider natural price discovery.
Relationship to the Oracle Price
Section titled “Relationship to the Oracle Price”The oracle price used for this limit is sourced from external spot markets — the same weighted median of prices across major exchanges described in Funding Rates. It updates approximately every 3 seconds.
If the oracle price itself moves significantly, the allowed mark price range shifts with it. The safety limit bounds the gap between mark and oracle, not the absolute price level.