Stop Loss

Oracle-based programmatic orders that trigger when asset prices fall below a specified threshold.

Stop Loss Orders

Stop Loss orders are oracle-based programmatic orders that automatically trigger when asset prices fall below a specified threshold, providing automated risk management through Chainlink-compatible price feeds.

Core Mechanism

The system monitors price ratios between two tokens. When the calculated exchange rate reaches or falls below the strike price, the order becomes executable:

(sellTokenPrice / buyTokenPrice) <= strike

Essential Data Structure

Parameter	Description
sellToken / buyToken	Token pair addresses
sellAmount / buyAmount	Trade amounts based on order type
sellTokenPriceOracle	Chainlink-compatible price oracle for sell token
buyTokenPriceOracle	Chainlink-compatible price oracle for buy token
strike	Exchange rate threshold (18 decimals) that activates execution
validTo	Expiration timestamp
maxTimeSinceLastOracleUpdate	Staleness limit for oracle data

Critical Oracle Requirements

Both oracles must use identical quote currencies. Price feeds undergo validation checks for:

• Positivity
• Freshness within the specified time window
• Decimal normalization to 18 decimals

Order Execution Flow

The contract performs sequential validation:

1. Confirms order hasn’t expired
2. Retrieves current oracle prices
3. Validates both prices exceed zero
4. Checks oracle data freshness
5. Normalizes prices to 18 decimals
6. Compares current rate against strike
7. Returns executable GPv2Order if all conditions pass

Practical Examples

• Protecting GNO positions at $200
• Selling up to 50 ETH with partial fills at $2000
• Cross-asset trading (WBTC for ETH at 15:1 ratio)

Each demonstrates different parameter configurations for real-world scenarios.

Stop loss orders provide one-time protection. After execution, you’ll need to create a new order for continued protection.