The below is an overview of how trading works on Isolated Markets.

Note: This document covers how the feature works from the protocol point of view and not the front end or the indexer.

Positions in isolated markets can only be opened on a subaccount with no open perpetual positions or a subaccount with an existing perpetual position in the same isolated market. Once a perpetual position for an isolated market is opened on a subaccount, no positions in any other markets can be opened until the perpetual position is closed.

The above restriction only applies to positions, orders can still be placed for different markets on a subaccount while it holds an open position for an isolated market. The orders will fail and be canceled when they match if the subaccount still holds an open position for a different isolated market. Error code 2005 indicates such a failure.

Other than the above caveat, isolated markets are traded the same way as cross markets.

Note: The maximum number of subaccounts per address is 128000, so that each isolated market can use a separate subaccount.

There is a new market_type parameter in the PerpetualParams proto struct that indicates the type of market.

There are 2 possible values for this parameter:

• PERPETUAL_MARKET_TYPE_CROSS - markets where subaccounts can have positions cross-margined with other PERPETUAL_MARKET_TYPE_CROSS markets. Every market currently listed on ritbit-mainnet is of this type.
• PERPETUAL_MARKET_TYPE_ISOLATED - markets that can only be margined in isolated, no cross-margining with other markets is possible

An example of how each type of market looks when queried using the /ritbit/perpetuals/perpetual/:id REST endpoint.

• PERPETUAL_MARKET_TYPE_CROSS

{
  "perpetual": {
    "params": {
      "id": 1,
      "ticker": "ETH-USD",
      "market_id": 1,
      "atomic_resolution": -9,
      "default_funding_ppm": 0,
      "liquidity_tier": 0,
      "market_type": "PERPETUAL_MARKET_TYPE_CROSS"
    },
    "funding_index": "0",
    "open_interest": "0"
  }
}

• PERPETUAL_MARKET_TYPE_ISOLATED

{
  "perpetual": {
    "params": {
      "id": 1,
      "ticker": "FLOKI-USD",
      "market_id": 37,
      "atomic_resolution": -13,
      "default_funding_ppm": 0,
      "liquidity_tier": 2,
      "market_type": "PERPETUAL_MARKET_TYPE_ISOLATED"
    },
    "funding_index": "0",
    "open_interest": "0"
  }
}