Improvements to trading: Conditional matching

Our main goal for our product is to build it as our users want it. Starting Tuesday, June 6th, we are updating our trading platform based on feedback received from our most active traders. These updates are not very visible, but they will have an impact on how you buy and sell tokens on Funderbeam Markets.

This is how the trade matching is changed from now on:

  • If an outstanding order is matched on the platform, it cannot be matched by other users, and only existing token-holders can step in and use their priority right
  • When an order is matched, it cannot be cancelled

A trade order is either a request to buy tokens, or an offer to sell tokens. Trade orders always include the amount of tokens, the price per token, and expiry date. If another platform user matches an order, a trade is made.  

Fewer orders that will not get a match

One of the main pain-points from our active users was that they were matching trades on the platform, and then experiencing that the trade did not go through. This has been happening because multiple users could match the same order, meaning that only the first one to match would actually get the trade. Starting today, it will not be possible to match an order that has already been matched by someone else.

may-29-2017-10-38-44

However, there is a small exception to this rule. On Funderbeam, existing token-holders in every syndicate have a priority right to buy tokens offered for sale before anyone else. Every offer to sell tokens has a priority period, and if someone who is not a token-holder has offered to buy within this period, they may still lose the trade if someone who is already a token-holder wants to match the sell order at the same price. This is what we refer to as a “conditional match”, meaning that there will be a trade, on the condition that no one with priority right interrupts the trade.

No more cancelled trades

As a part of this update, we are also removing the option to cancel an order once it has been matched by another user. This will improve the experience of all our users, as there should be no uncertainty on the trade being reached between both users.

There is still a chance that someone will fail to pay for their trade, and we will continue to handle these situations case-by-case. The counterparty risk lies with the parties to the trade, but we take the failures to pay very seriously, potentially leading to trading bans for such defaulting users. Matched trades should be honoured, and users themselves play important role in building trust on the platform.

Both of these updates are created in order to improve the experience of our users, as well as ensure that all trading will be fair and orderly for everyone involved.

If you have any feedback or comments feel free to get in touch on hello@funderbeam.com