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Limits and Constraints

Protocol-level limits and constraints for MegaFi. Understand operational boundaries and safety mechanisms.

At a Glance​

  • Position limits prevent excessive risk
  • Rate limits ensure system stability
  • Minimum/maximum values for operations
  • Safety mechanisms protect users and protocol
  • Most limits are generous for typical use

Position Limits​

Liquidity Positions​

Per Account:

  • Maximum LP positions: 1,000
  • Maximum value per position: No limit
  • Minimum liquidity amount: ~$1 worth
  • Maximum single deposit: No limit

Per Pool:

  • Maximum total liquidity: No limit
  • Minimum tick range: 1 tick spacing
  • Maximum tick range: Full range (no limit)

Strategy Positions​

Per Account:

  • Maximum active strategies: 100
  • Minimum capital per strategy: $100 recommended (no hard limit)
  • Maximum capital per strategy: No limit

Rebalancing:

  • Conservative mode: Max 2 rebalances/day
  • Balanced mode: Max 12 rebalances/day
  • Aggressive mode: Max 24 rebalances/day
  • Minimum cooldown between rebalances: 30 minutes (aggressive), 1 hour (balanced), 12 hours (conservative)

Options Positions​

Per Account:

  • Maximum open options: 1,000
  • Maximum notional value: $500,000 (adjustable with collateral)
  • Maximum delta exposure: ±100 ETH equivalent
  • Maximum gamma exposure: Implementation dependent

Per Option:

  • Minimum size: 0.1 contracts
  • Maximum size per trade: 100 contracts
  • Minimum collateral ratio: 120% of option value

Transaction Limits​

Swap Limits​

Per Transaction:

  • Minimum swap: ~$0.10 worth
  • Maximum swap: Limited by pool liquidity
  • Maximum price impact: No hard limit (warning at 2%+)
  • Minimum slippage tolerance: 0.01%
  • Maximum slippage tolerance: 50%

Rate Limits:

  • Swaps per second: No limit (network capacity 100k+ TPS)
  • Swaps per account: No limit

Gas Limits​

Per Transaction:

  • Simple swap: 150,000 gas
  • Multi-hop swap: 300,000 gas
  • Add liquidity: 250,000 gas
  • Remove liquidity: 200,000 gas
  • Deploy strategy: 600,000 gas
  • Option trade: 220,000 gas

Block gas limit: Effectively unlimited (continuous execution)

Pool Constraints​

Creation​

Requirements:

  • Both tokens must be ERC-20
  • Token pair + fee tier must be unique
  • Initial price must be set
  • Minimum initial liquidity: 1 wei

Fee Tiers:

  • Available: 0.05%, 0.3%, 1%
  • Custom tiers: Not supported
  • Fee changes: Not possible (immutable)

Operations​

Tick Spacing:

  • 0.05% tier: 10 ticks
  • 0.3% tier: 60 ticks
  • 1% tier: 200 ticks
  • Positions must align to tick spacing

Price Range:

  • Minimum price: Tick -887272
  • Maximum price: Tick 887272
  • Full range supported

Oracle Limits​

Price Updates​

Frequency:

  • Update interval: Real-time (continuous)
  • Maximum staleness accepted: 1 minute
  • Minimum time between updates: No limit

Deviation:

  • Maximum price change per update: 10% (safety check)
  • Circuit breaker: Activates on > 20% movement
  • Recovery: Manual review and reset

Strategy Constraints​

Zone Parameters​

Width Limits:

  • Conservative: 15% to 50%
  • Balanced: 8% to 25%
  • Aggressive: 2% to 10%
  • Dynamic: 3% to 30%

Rebalance Thresholds:

  • Minimum benefit: $0.50 (aggressive) to $5 (conservative)
  • Maximum gas spend: 5% of expected benefit
  • Price movement trigger: 1% (aggressive) to 10% (conservative)

Performance​

Monitoring:

  • Maximum inactive time before alert: 48 hours
  • Minimum APR before warning: 5%
  • Maximum drawdown before pause: 50%

Hedge Constraints​

Collateral​

Requirements:

  • Covered options: 100% underlying
  • Cash-secured: 100% strike value
  • Maintenance margin: 120% minimum

Liquidation:

  • Grace period: 1 hour
  • Partial liquidation: Allowed
  • Liquidation fee: 5%

Option Parameters​

Strikes:

  • Minimum: No limit
  • Maximum: No limit
  • Spacing: Protocol-defined per expiration

Expirations:

  • Minimum: 1 day
  • Maximum: 90 days
  • Standard expirations: Daily, weekly, monthly

Sizes:

  • Minimum: 0.1 contracts
  • Maximum per account: Subject to risk limits
  • Maximum open interest per strike: 10,000 contracts

API Limits​

REST API​

Rate Limits:

  • Public endpoints: 100 requests/minute
  • Authenticated endpoints: 1,000 requests/minute
  • Burst allowance: 2x rate for 10 seconds

Response Size:

  • Maximum response: 5 MB
  • Maximum items per page: 1,000
  • Default page size: 100

WebSocket​

Connections:

  • Maximum per IP: 10
  • Maximum subscriptions per connection: 100
  • Reconnection rate: Max 5/minute

Message Rate:

  • Inbound: 10 messages/second
  • Outbound: Unlimited (server-controlled)

Network Constraints​

MegaETH Limits​

Throughput:

  • Theoretical maximum: 100,000+ TPS
  • Practical sustained: 50,000 TPS
  • Burst capacity: 150,000 TPS

Latency:

  • Target: < 10ms
  • 99th percentile: < 20ms
  • Maximum acceptable: < 100ms

Block Size:

  • Not applicable (continuous execution)
  • Transaction batches: Variable size

Smart Contract Limits​

Storage​

Per Contract:

  • Maximum storage slots: 2^256 (effectively unlimited)
  • Practical limit: Gas cost prohibitive beyond millions

Arrays:

  • Maximum array length: Gas-limited
  • Recommended maximum: 1,000 elements per operation

Execution​

Stack Depth:

  • Maximum: 1024 frames
  • Recursive calls: Limited by stack depth

Memory:

  • Maximum: 2^256 bytes (effectively unlimited)
  • Practical limit: Gas cost

Safety Mechanisms​

Circuit Breakers​

Triggered By:

  • Unusual price movements (> 20%)
  • High transaction failure rate (> 10%)
  • Abnormal volume (10x average)
  • Oracle failures

Actions:

  • Pause new positions
  • Allow closures only
  • Manual review
  • Gradual resume

Emergency Powers​

Pause Function:

  • Who: Admin multi-sig
  • Scope: All new transactions
  • Duration: Until unpause
  • Existing positions: Safe

Upgrades:

  • Timelock: 48 hours minimum
  • Multi-sig: 3 of 5 required
  • Scope: Implementation only (proxy remains)

User Limits (Recommendations)​

Risk Management​

Position Sizing:

  • Maximum per position: 25% of portfolio
  • Maximum in single pool: 50% of portfolio
  • Minimum diversification: 3 positions

Leverage:

  • Conservative: 1x (no leverage)
  • Moderate: 2x
  • Aggressive: 3x
  • Unsafe: > 3x

Activity​

Transactions:

  • Daily: No limit (network handles volume)
  • Recommended monitoring: If > 100 swaps/day

Strategies:

  • Active strategies: Max 10 for practical monitoring
  • Passive strategies: No limit

Future Changes​

Limits may be adjusted based on:

  • Network performance data
  • User feedback
  • Security considerations
  • Regulatory requirements

Changes announced via:

  • Official blog
  • Discord announcements
  • Twitter
  • In-app notifications

Overcoming Limits​

For Higher Limits​

Contact: partnerships@megafi.app

Requirements:

  • KYC/KYB documentation
  • Trading history
  • Risk management plan
  • Compliance agreement

Custom Arrangements:

  • Institutional accounts
  • Market makers
  • Integration partners

Monitoring Your Limits​

Check Usage​

Interface shows:

  • Current position count vs limit
  • Notional value vs delta limit
  • Collateral ratio vs maintenance
  • API usage vs rate limit

Alerts​

Set notifications for:

  • Approaching position limits
  • Margin call warnings
  • API rate limit approaching
  • Circuit breaker activation

FAQ​

Why are there limits?
Protect users and protocol from excessive risk. Ensure system stability.

Can limits be increased?
Yes, for institutional users or partnerships. Contact team.

What happens if I exceed a limit?
Transaction fails with error message. No penalty, just retry within limits.

Are limits the same on testnet?
Generally yes, but may differ for testing purposes.

Will limits change?
Yes, may adjust based on network performance and requirements.

How do I know my current limit usage?
Interface displays usage vs limits in account dashboard.

Next Steps​

Understand boundaries:

Limits keep everyone safe.