Partial Execution
Partial execution occurs when a trade order is only partially filled, meaning that only a portion of the requested asset amount is bought or sold. This situation typically arises when there is insufficient liquidity to complete the entire transaction at the desired price, or when certain risk controls such as slippage tolerance or safe mode caps are triggered to protect traders from unfavorable price movements.
How It Works
In partial execution:
- Traders receive the tokens corresponding to the portion of the order that was successfully executed.
- The unfilled remainder of the order is either refunded or remains open depending on settings.
- Partial fills help optimize trade execution by allowing trades to proceed at feasible volumes rather than failing completely.
Configuration
Partial execution can be enabled or disabled in transaction settings. Situations that lead to partial execution include:
- Lack of sufficient liquidity at the requested price
- Reaching the slippage tolerance limit set by the user
- Activation of safe mode limits designed to prevent excessive price deviations during trading
This mechanism offers a balance between execution certainty and protection from adverse market conditions, helping traders avoid large losses from sudden price swings or thin liquidity while still allowing partial participation in the market.