The majority of crypto-currency exchange platforms allow their clients to create funded orders only, when the order payment is withdrawn in full from the client’s account or blocked the moment the order is created. In yorapid system, the payment is withdrawn when the order meets its corresponding orders. This work algorithm allows our clients create both unfunded and funded orders.
Funded orders are orders which the trader has enough funds to cover both at the moment of their placement and closure. Unfunded orders are those which the trader has enough funds to cover only at the moment of their placement.
Example: A trader has 10 BTC in his wallet. He creates an order to sell 5 BTC - this is a funded order. Then he creates second order to sell 2 BTC - this is a funded order as well. Then the trader creates an order for 9 BTC - this is an unfunded order. At the moment of its placement (until orders 1 and 2 are not closed) the trader has enough funds to cover order 3, but as soon as one of the earlier orders closes, the trader will have insufficient funds to cover his third order.
In order to limit the number of unfunded orders, we’ve introduced a transaction commission. The trader can create unfunded orders as long as he has enough funds to pay transaction commission for them.
On Hold Orders
The open order gets status On Hold when the trader doesn’t have sufficient funds to cover it at the moment of its activation, or when the order is engaged in trading process (status Open) and the funds to cover it cease to be sufficient. Such kind of orders do not participate in trading until the user tops up his wallet with the sum equal or bigger than the funds necessary to cover the sum of the order, commission including. If the user doesn’t feel like continuing trading the order on hold, he can cancel it.
The orders get On Hold status in the following cases:
1) When the trader creates an order for the total sum (commission including) bigger than the funds in his wallet, chosen for the order coverage. For example, the trader has 3 BTC in his wallet. He creates an order for 4 BTC. This order will be created with the status On Hold.
2) When closing the funded order with unfunded order to follow. Example: there are 6 LTC in the trader’s wallet. He creates a sell order for 5 LTC (funded) and a sell order for 3 LTC (unfunded). His first order closes successfully. The trader then has 1 LTC left in his wallet, this is not enough to cover his second order, so it gets the status On Hold.
3) When withdrawing or transferring funds from the wallet, engaged in trading. Example: there are 8 LTC in the trader’s wallet. He creates a sell order for 3 LTC. Then he creates a request to withdraw funds from the same wallet for the sum of 6 LTC. The funds in the wallet become insufficient to cover the sell order for 3 LTC, so this order gets the status On Hold.
4) When after paying mining pool maintenance fees or other system services fees the funds become insufficient to cover the trader’s open orders, they are put On Hold.