Summary

Unified Markets (UM) has two products, directed Request for Quote (RFQ) and Global Order Books (OB), which make up the UM user interface.

RFQ’s are short-lived private auction RFQ markets. Users must specify the structure of the market as well as the counterparties who are able to return prices. In an RFQ, only the creator of the market is able to see the returned prices from the Makers and is able to cross a Maker’s order. Makers are unable to see each other’s prices or their order’s relative priority.

Orderbooks enable users to create long-lived public auction Central Limit Order Book markets. Users must specify the structure of the market and anyone is able to participate. In an Orderbook, all orders submitted are blind and are actionable by any user.

Deribit, BIT, and Bybit are available as venues.

Block Trade Settlement

All trades on Paradigm are submitted as “Block Trades” to the underlying settlement venue. The two key characteristics of “Block Trades” are atomicity of clearing and either complete success or rejection at clearing. As such, when Paradigm submits a “Block Trade” to an underlying settlement venue, all legs must successfully clear or the entire “Block Trade” is rejected.

When two orders cross on Paradigm, Paradigm submits a “Block Trade” to the underlying settlement venue for clearing. Two orders crossing in DRFQv2 will result in each Orders state == CLOSED and a Trade object with the state == PENDING_SETTLEMENT. If the trade successfully clears, both the Taker and the Maker will receive a Trade message with the state == FILLED, if not, state == REJECTED.

In the event of a successful trade, the positions will appear in your underlying settlement account. In the event of a rejected trade, the positions will NOT appear in your underlying settlement account.