Markets

On dYdX Chain, each market pair has a set of parameters that can be adjusted by governance, the parameters are as follows:

Title	Definition
id	sequentially-generated value
pair	human-readable name of the market pair
exponent	exponent of the price. e.g. if Exponent == -5 then a Value of 1,000,000,000 represents $10,000. Therefore 10 ^ Exponent represents the smallest price step (in dollars) that can be recorded.
min_exchanges	the minimum number of exchanges that should be reporting a live price for a price update to be considered valid.
min_price_change_ppm	the minimum allowable change in price value that would cause a price update on the network. Measured as 1e-6 (parts per million).
exchange_config_json	A string of json that encodes the configuration for resolving the price of this market on various exchanges, otherwise also known as “oracle”. On dYdX Chain, oracles are used for the following: Ensuring that each account is well-collateralized after each trade, Determining when an account should be liquidated.

Liquidity Tiers

Markets of similar risk are categorized into Liquidity Tiers based on standardized risk parameters. These tiers define the margin requirements for each market and should be determined according to the depth of the relative market's book and the market capitalization of the token.

• Initial_margin_ppm = the margin fraction needed to open a position.

• Maintenance_fraction_ppm = the fraction of the initial-margin that the maintenance-margin is.

• Base_position_notional = the maximum position size at which the margin requirements are not increased over the default values.

• Impact_notional = the impact notional amount (in quote quantums) is used to determine impact bid/ask prices and its recommended value is 500 USDC / initial margin fraction.

id	name	initial_margin_ppm	maintenance_fraction_ppm	base_position_ notional	impact_notional	maintenance_fraction (as is)	impact_notional (as is)
0	Large-Cap	50000 [0.05]	600000 [0.6]	‎1000000000000 [1,000,000 USDC]	500 USDC / IM	0.03	10000000000 [10,000 USDC]
1	Mid-Cap	100000 [0.1]	500000 [0.5]	250000000000 [250,000 USDC]	500 USDC / IM	0.05	5000000000 [5,000 USDC]
2	Long-Tail	200000 [0.2]	500000 [0.5]	100000000000 [100,000 USDC]	500 USDC / IM	0.1	2500000000 [2,500 USDC]
3	Safety	1000000 [1]	200000 [0.02]	1000000000 [1,000 USDC]	2,500 USDC / IM	0.2	2500000000 [2,500 USDC]