Trade Size
In order to ensure maximum capital efficiency, in other words, protect pools from being drained while allowing for large enough position sizes and potential earnings, limits are applied on the open interest and max PnL.
These limits depend on the current TVL of the pools and can be adjusted accordingly by the team to ensure the capital efficiency.
Example
Consider the following conditions:
$10M TVL on the platform
10% open interest limit, resulting in $1M limit for both LONG and SHORT
Currently $100k LONG open interest and $200k SHORT open interest
This means a user could open a LONG position of up to $900k and a SHORT position of up to $800k.
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