IOC Feature：Price Protection Mechanism for Spot Trading

This document explains the Immediate or Cancel (IOC) feature and its associated price protection mechanism on the KuCoin EU crypto platform. The feature is intended to support orderly execution and reduce the likelihood of trade processing at significantly unfavorable prices. This explanation is provided for informational purposes only and does not constitute investment advice or a recommendation under MiCAR or MiFID.

1. The Immediate Or Cancel (IOC) Strategy:

Our IOC strategy focuses on providing efficient order execution while upholding MiCAR’s principles for market integrity. Here’s how it works:

• The IOC strategy evaluates contra orders against users' market or limit orders within the order book. The system checks whether the price difference between the market price and your ask/bid price exceeds a defined threshold, which can be accessed via the API symbol interface.

• If the difference exceed the threshold, your order will not be cancelled, but the system will prompt a notice to inform you that your order might not be completely filled.

• Any order falling within the threshold will be partially executed against existing market orders. The portion of the order that remains unfilled will be canceled immediately.

Illustrative Example (for explanation only):

If the threshold is 10% and the DOT/USDC market shows an ask of 1.20000:

• A market buy order is submitted
• The system estimates part of the order may execute at 1.40000 (a deviation of 16.7%)
• Execution occurs only up to the 10% threshold (e.g., up to approximately 1.30000), with remaining volume cancelled

Note: Small deviations may occur depending on volatility and the order book structure. Partial execution is a normal outcome of IOC behaviour.

2. Price Protection Mechanism in Margin Trading

• Orders are analyzed based on whether the price difference between market price and ask/bid price could lead to execution worse than the bankruptcy price—the transaction price that potentially causes a negative account balance.

• If the price difference surpasses the threshold, the order may execute partially against existing market orders priced below the bankruptcy level.

Risk Disclosure

This feature does not guarantee price outcomes or prevent losses. Users should ensure they understand the functionality, limitations, and risks of IOC and margin trading. Independent professional advice should be sought where appropriate.

We hope this article has been helpful. If you have any other questions, please reach out to our 24/7 customer support via online chat or submit a ticket.