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Equity Tiers and Rate Limits
Equity Tiers and Rate Limits
dYdX Operations Services Ltd. avatar
Written by dYdX Operations Services Ltd.
Updated this week

Equity tiers and rate limits are put in place to prevent spam on the orderbook and prevent the blockchain state from getting too large which can potentially impact performance. For the latest numbers on rate limits, check the dYdX V4 docs here

What are equity tiers?

As part of the default settings of the v4 open source software (”dYdX Chain”), equity tier limit defines the set of equity tiers to limit how many open orders a subaccount is allowed to have.

For example with 20 USDC in equity value, a trader can have 1 open order, with 100 USDC, they can have 5 open orders and so on, according to the table below.

Order Type

Net Collateral

limit

Long-term or

Conditional orders

< $20

0

>= $20 and < $100

4

>= $100 and < $1,000

8

>= $1,000 and < $10,000

10

>= $10,000 and < $100,000

100

> $100,000

200

Equity Tiers and Isolated Positions

Each isolated position is individually subject to equity tier limits. Therefore, to open an isolated position via a long-term order, there must be at least $20 USDC of margin backing the position. If the isolated position has <$20 of margin backing it, its long term/conditional orders will fail.

Head here to learn more about using Isolated Margin.

What is the Block Rate Limit?

The block rate limit defines the maximum number of CLOB specific operations per block. For example, with short-term orders a trader can place 200 order attempts per block, for stateful orders the limit is 2 per block or 20 per 100 blocks.

Place Orders Type

Num_blocks

Limit

Short-term

1

200

Long-term or Conditional

1

2

Long-term or Conditional

100

20

Cancel Orders

Num_blocks

Limit

Short-term

200

1

Long-term or Conditional

unlimited

1

How are liquidity tiers and block rate limits determined?

The equity tiers and block rate limits were initially defined in the genesis file of the v4 open source software (”dYdX Chain”). However, the applicable governance community has the ability to create and modify equity tiers and block rate limits as well as update existing placements.

Disclaimer and Terms

This document may provide information with respect to the dYdX Chain software, and/or non-mandatory guidelines and suggestions that may help with using dYdX Chain software. dYdX Operations Services Ltd. does not run dYdX Chain validators nor operate or control the dYdX Chain network. dYdX Operations Services Ltd. is not responsible for any actions taken by other third parties who use dYdX Chain software. dYdX Operations Services Ltd. services and products are not available to persons or entities who reside in, are located in, are incorporated in, or have registered offices in the United States or Canada, or Restricted Persons (as defined in the Terms of Use). The content provided herein does not constitute, and should not be considered, or relied upon as, financial advice, legal advice, tax advice, investment advice or advice of any other nature, and you agree that you are responsible to conduct independent research, perform due diligence and engage a professional advisor prior to taking any financial, tax, legal or investment action related to the foregoing content. An asset's inclusion in a particular liquidity tier is not an endorsement or recommendation of the asset, and trading in any asset supported by dYdX Chain may involve material risks, including the risk of financial losses arising from market volatility or liquidation. The information contained herein, and any use of products or services provided by dYdX Operations Services Ltd., are subject to the Terms of Use.

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