What is a floating rate?

A floating rate is a rate that is updated in real time and can change during the exchange process. This rate is formed based on data from several liquidity providers and reflects the current market situation.

Why can the amount to be received change after the order is created?

Our service operates on a floating rate model.

The rate displayed when creating an order is indicative and is calculated based on market quotes. The final calculation begins after the funds are received and the necessary number of network confirmations are received.

When is the rate fixed?

After the full crediting of the incoming asset, the service fixes the initial exchange rate and calculates the preliminary amount to be received.

The number of network confirmations specified during payment is the maximum value. In some cases, the order can be processed and the rate can be fixed earlier if this is allowed by the features of the technical systems used.

Why can the amount change after the rate is fixed?

After the initial fixation, the order is sent for processing. During this period, the service executes the exchange on external trading platforms under current market conditions.

The processing time of the order can be up to 240 minutes.

If during this time the market rate changes by more than 0.1% in a direction unfavorable for the execution of the order, the service has the right to recalculate the rate and the amount to be received. At the same time, a new rate is fixed, which replaces the previously valid rate.

This model allows to ensure the execution of orders even in conditions of high market volatility.

Can the amount increase if the market goes in my favor?

No.

After fixing a new rate, the amount to be received is not increased. During the processing of the order, the amount can remain unchanged or decrease in case of further unfavorable change in the market situation.

Example

Suppose, after the funds were credited, a rate was fixed, according to which the client should receive 1,000 USDT.

During the processing of the order, the market price of the asset changed by more than 0.1% in a direction unfavorable for the execution of the order. In this case, the service has the right to fix a new rate and recalculate the payout amount, for example, to 990 USDT.

If after such a recalculation the market changes again in a favorable direction, the payout amount will not be increased back. The last fixed rate is used for further calculation.

By creating an order, the client confirms agreement with this procedure for determining and adjusting the exchange rate.

Why does the service use such a method of calculating the rate?

Our service is not a liquidity provider of this method and does not store a reserve of each currency in a volume sufficient for instant execution of all orders. External trading platforms and liquidity providers are used to perform exchanges.

After the funds are received, the service needs time to execute the transaction under current market conditions. During this period, the value of the asset can change. To ensure stable operation of the service and the possibility of executing orders in conditions of high market volatility, a mechanism for adjusting the rate is used in case of significant unfavorable change in the market price.

This approach allows to continue serving customers even during periods of sharp market fluctuations and prevents situations where the execution of an order at a previously calculated rate becomes economically impossible.

What is a fixed rate?

A fixed rate is a rate that is fixed for your order for a limited time. In our service, the rate is fixed for 15 minutes from the moment of creating the order.
During the fixation period, the amount to be received remains unchanged.

Can the fixed rate change?

Yes, the fixed rate can be recalculated in the following cases:

1. Expiration of 15 minutes, allocated for payment of the order.
2. Abnormal market volatility, at which maintaining a fixed price becomes impossible.

In case of high volatility, the rate is agreed individually during the receipt of funds.

What will happen if I don't manage to pay the order within 15 minutes?

After the fixation period expires, the rate is recalculated taking into account the current market value. Before continuing the exchange, you will be able to familiarize yourself with the updated rate and confirm the operation.

What to choose - floating or fixed rate?

For most exchange directions, the service offers two options for executing an order: fixed and floating rate.

• Fixed rate will suit clients who value a known amount to be received in advance. After fixing the rate, a change in the market price of the asset does not affect the result of the exchange. Protection against market risks is taken into account in the exchange rate, so it may differ from the current average market value.

• Floating rate is aimed at getting a rate as close to the market as possible. In this mode, the service uses current market quotes and executes the order under current liquidity conditions. For this reason, processing the order may take more time, and the amount to be received may change during execution in accordance with the rules of the floating rate.

  Thus, the fixed rate provides a predictable exchange result, and the floating rate allows to focus on the market price of the asset, taking the risk of its change during the processing of the order.

  The choice between a fixed and floating rate is made by the client independently when creating an order.