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Trading Parameters

Expiry & Trading Window:​

  • Trades can be accepted up to 12 hours before expiry. After market crosses the 12th hour before expiry, the BLP pool stops offering liquidity for that market.

Example: If a contract expires on a Friday at 08:00 UTC, you can enter trades for that contract until 20:00 UTC on Thurday.

  • Trading for a new set of contracts opens 36 hours before the expiry of the most recent expiry.

Example: If a contract is set to expire at 08:00 UTC on December 26th, the trading for this contract would start at 20:00 UTC on December 24th.

Pricing Parameters:​

Skew:​

Buffer v2.6 introduces a Skew mechanism that dynamically adjusts based on a percentage of the total funds in the Buffer Liquidity Pool (BLP). This change allows the maximum skew to scale with the liquidity of the pool, enhancing its responsiveness to fluctuations in market conditions. By tying skew limits to the pool's liquidity, the system maintains stability more effectively, adapting the balance mechanism to reflect the current financial state of the pool.

Dynamic Pricing:​

Dynamic pricing on Buffer's trading platform uses statistical measures of market skew, dynamically adjusting based on the real-time imbalance between buy and sell positions. Dynamic pricing is vital to Buffer's risk management mechamism. By encouraging market neutrality and protecting liquidity providers, it plays a critical role in mantaining the stability of Buffer's prediction markets.