The Exchange Business Functional Documentation

1. On-Platform Exchange Trading System (The Exchange)

• Overview: The Exchange offers a "Simple yet Secure" platform for purchasing and selling Virtual Assets at market rates. Specializing in spot trading, the Exchange accommodates a variety of virtual asset pairs as well as virtual-to-fiat currency pairs.
• Trading Mechanics:
• The Exchange enables users to trade from a carefully selected range of virtual asset pairs. It utilizes a price priority matching mechanism, sequencing and executing order requests according to their assigned numbers.
• In the order book, orders are matched based on price, with the time of entry serving as the tie-breaker for orders at identical prices. This order book provides a real-time view of buy and sell orders, enhancing market transparency and facilitating price discovery.
• The remaining quantity enters the order book at the specified price for limit orders that are not fully matched.
• For market orders, the Exchange continues matching until the order is fully executed or deviates by more than 10% from the current price. Any unmatched quantity beyond this point is canceled.
• Post-Matching Process:
• Trade Record Generation: The Exchange generates trade records for both Takers and Makers.
• Order Status Update: Fully matched orders are marked as fully executed, while partially matched orders are marked as partially executed.
• Tick Data Updates: Upon trade execution, the Exchange disseminates trade records to the system and subscribed users (maintaining user confidentiality).
• Price and Candlestick Data: The executed trade price becomes the prevailing market price. Concurrently, candlestick records are updated and shared with users, ensuring accurate recording, and updating of trade data, order status, market prices, and candlestick information.
• Order Book Structure: The Exchange's matching engine incorporates structured double-linked lists for Asks and Bids. This structure efficiently links prices to corresponding orders, streamlining the matching process.
• Order Types:
• Market Order: Executes immediately at the best available price, ensuring execution but not the execution price.
• Limit Order: Allows setting a specific price for buying or selling, guaranteeing the price but not the execution.
• Stop-loss Order(coming soon): Designed to limit losses by activating a sell order at a predetermined price.
• Take-profit Order(coming soon): Set to sell automatically when a specific profit level is reached.
• IOC (Immediate Or Cancel) Order(coming soon): Executes instantly or is canceled if no match is found.
• FOK (Fill Or Kill) Order(coming soon): Needs to be fully filled upon placement or is immediately canceled.
• System Fairness: The Exchange operates on a principle of fairness. All orders are executed sequentially, ensuring a transparent and equitable trading environment without special prioritization.

• The Exchange currently supports BTC, ETH, and USDC.

• Available pairs include BTC/USDC, ETH/USDC, ETH/BTC, and various Virtual Asset to Fiat Currency Trading pairs (e.g., BTC/USD, BTC/HKD, ETH/USD, ETH/HKD, USDC/USD, and USDC/HKD)(fiat pairs coming soon).