Trading Rules

Definitions

Candle
Candlestick chart of a cryptoasset, with information on opening price, closing price, highest price, lowest price and volume traded in a given period.

Employees
Shareholders, partners, employees and interns of Mercado Bitcoin

Cryptoassets
Digital Assets and tokens

Mercado Bitcoin or MB
Mercado Bitcoin Serviços Digitais Ltda., registered with the CNPJ No. 18.213.434.0001/35, and headquartered at Alameda Mamoré, 687, conj. 303, sala 03, Alphaville Industrial, Barueri/SP, CEP 06454-040

Fiat currency
Real (R$)

Order
Instruction to buy or sell a cryptoasset

Trading Pairs
These are the assets involved in the transaction (e.g. buying bitcoin with real R$)

MB Platform
Platform provided by Mercado Bitcoin

Slippage
Difference between expected price and executed price when buying/selling a cryptoasset

User
Anyone who wants to buy or sell their cryptoassets made available and supported by MB’s platform

Market Informations

1. General Rules

The public cryptoasset market information is:
Orders in the order book (price, cryptoasset, volume and date);
Executed orders (price, cryptoasset, volume and date);
Candle information for cryptoassets (opening price, closing price, highest price, lowest price and date);
Information on available cryptoassets, trading pairs and fees.

2. Operations carried out by Mercado Bitcoin employees on the MB platform

2TM’s Code of Ethics and Conduct prohibits its employees from using any type of information to obtain an undue advantage or personal favor;
Employees have no priority and are subject to the same rules applicable to all Users of the MB Platform

Trading at MB and Order Types

1. Quick Trade

For buying and selling assets in the “Quick Trade” mode (simplified experience), the fees will be calculated at the time the transaction is made and may vary depending on the size of the order, market conditions and/or other factors. The trading fees and the approximate price of the asset will be presented to you before the operation is completed.

2. Buy with Pix

For purchases made using “Buy with Pix” the fees will be calculated at the time the transaction is made and may vary depending on the size of the order, market conditions and/or other factors.

3. Orders

To buy and sell Cryptoassets on MB you need to create an Order;
For an Order to be posted to the Order Book, the user must have a balance (in fiat currency or cryptoassets) available in their MB Platform account that covers the total value of the Order and any trading fees;
When the user places the Order in the Order Book, the balance of the cryptoasset or fiat currency in question is transferred from the available balance to the balance in orders;
The user can place different types of Orders in the Order Book: market order, limit order, stop-limit order and post-only order;
The User can cancel limit orders, stop-limit orders and post-only orders if they have not been fully executed.

4. Posting Orders in the Order book

Taker Order: an order that when added to the order book is executed immediately. It is an order that removes liquidity;

Maker Order: an order that when added to the order book is not executed immediately. It is an order that adds liquidity. The order will remain open until:
The user cancel the order him/herself; or
The full execution of Taker Orders that are subsequently entered in the order book.

5. Execution of Orders

→ The MB platform matches a Maker Order with a Taker Order based on time-price priority, i.e. whenever a Taker Order is launched it will be executed with the Maker Order with the best price and the oldest, continuing its execution with subsequent Maker Orders until it is completely executed.
→ After the execution of Orders, the balance of fiat currency or cryptoassets is immediately (online settlement) debited or credited to the accounts of the →  MB platform users involved in the transactions.
The user can withdraw fiat currency or wallet-out the cryptoasset immediately after executing the Order.
→ All users have the same price and time priority and have the option of using all the same types of access to the MB’s platform.

6. Order Status

When you create an order, it is evaluated against the other orders in the trading book and given the status below:

Open: The order remains active in the trading book. There may be partial executions.
Executed: The order has been executed, so the purchase or sale has been completed.
Canceled: The order has been canceled. There may be partial executions before the order is canceled.

7. Market Order

Order with price defined by the MB Platform according to the quantity of Cryptoassets or volume in FIAT informed. The execution price is estimated at the time this type of Order is selected, based on the best prices available in the Order Book;
The Market Order is always a Taker Order;
There is no guarantee that the Market Order will be executed at the calculated price. The final price will be set based on the orders consumed at the time of execution;
In this type of order, there is a risk of slippage: depending on the number of Cryptoassets and the prices of the orders available in the Order Book, the Market Order may be executed at prices very different from the prices of the last trade or the prices of the best orders available.

8. Slippage Protection

At MB we have a protection mechanism to ensure that your slippage is not high. Thus, for all cryptoassets, if the slippage exceeds the asset’s maximum slippage, the amount of the order that has not yet been executed will be canceled. For example: you create a buy order for R$10,000.00 for an asset whose maximum slippage is 10%. The order then matches in the order book and the purchases are executed. However, after buying R$8,000.00, the slippage exceeds 10%. At this point, the order is canceled and the remaining R$2,000 returns to your account.

9. Limit Order

Order executed at a price equal to or better than that specified. In the case of a Sell Limit Order, the price must be higher or equal, in order to sell at the highest possible price. In the case of a Buy Limit Order, the price must be lower or equal, in order to buy at the lowest possible price;
If the quantity available in the Order Book is not sufficient to meet the determined limit price, the Order is partially executed and the remaining quantity is held in an open Order waiting for other traders at that price;
The Limit Order can be posted as a Taker Order or a Maker Order.

10. Post-only Order

It is a Limit Order that is only created if it is not immediately executed with a pre-existing Order in the Order Book;
A Post-only Order can only be placed as a Maker Order.

11. Stop-limit Order

A Stop-Limit Order is an instruction to place a Sell Order if a certain price is reached (Stop Price);
When the Stop Price is achieved, a Limit Order is launched. The price of the Limit Order is called Limit Price;
The Stop Price and Limit Price must be set when creating the Stop Limit Order;
There is no guarantee that the Limit Order launched will be executed;
The Stop Order can be a Taker Order or a Maker Order.

12. Trading Fees

MB charges a fee whenever an Order is executed, in part or in its entirety, in the Order Book.
Fees vary according to the type of Order (Taker or Maker), user profile and experience (e.g. simplified, PRO) used to carry out the transaction.

13. API

MB allows transactions to be carried out from its API. The API has limits on requests per IP and per endpoint. The limit is 1 request per second per endpoint, with the exception of the endpoints in the table below:
If you need more requests, please send an e-mail to [email protected] so that your request can be reviewed.
Type/Requisitions

14. Subaccounts

The functionality allows clients to create subaccounts linked to their main account.
The subaccounts are segregated from each other and allow the client to implement different strategies in each one.

Market Integrity

General Rules

All Order executions are irreversible. MB may cancel open orders in the following cases:
Identification of misuse of the MB Platform;
Violation, in any form, of any of the Terms of Use of the MB Platform, as well as any other document or guideline published by MB and the applicable legislation and other regulations;
Orders with incorrect parameters (e.g. price, quantity, asset, rate, etc.);
Court Order;
Technical reasons (e.g. maintenance).
If, for any technical reason, Users’ ability to use MB’s platforms and tools is impaired, MB may, at its sole discretion:

– Disable wallet-in, wallet-out;
– Cancel open orders;
– Cancel access to the platform and tools;
– Leave the order book in cancel-only mode (no possibility of placing new orders).