> For the complete documentation index, see [llms.txt](https://hertzflow.gitbook.io/hertzflow-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hertzflow.gitbook.io/hertzflow-docs/trade-on-hertzflow/order-execution.md).

# Order Execution

## Order Types

You can open and close positions using four execution modes:

| Order Type                | Triggers When                                                            | Best For                                                              |
| ------------------------- | ------------------------------------------------------------------------ | --------------------------------------------------------------------- |
| **Market** (Open / Close) | Immediately at mark price                                                | Getting in or out quickly when speed matters more than exact price    |
| **Limit** (Open only)     | Mark price reaches your set limit price                                  | Entering at a specific target price without overpaying                |
| **Trigger** (Close only)  | Mark price reaches your set trigger price, then executes as market order | Stop-loss or take-profit strategies — prioritizes execution certainty |
| **Liquidation**           | Mark price hits your liquidation threshold                               | Automatic protocol safeguard to prevent further losses                |

{% hint style="info" %}
**Limit vs. Trigger — what's the difference?**

* **Limit orders** rest as a pending order from the moment you place them. They only fill once the mark price reaches your limit price (or better) — great for price discipline, but may never fill in fast markets.
* **Trigger orders** stay inactive until your trigger price is hit, then become a market order. They prioritize getting you out over exact price, so some slippage is possible.
  {% endhint %}

## Price Impact

Price impact reflects the cost of pool imbalance when your trade skews the long/short ratio. HertzFlow uses a **deferred impact model** — you don't pay impact fees upfront:

1. **When you open:** Your entry price equals the oracle mark price. No impact fee is charged.
2. **While your position is open:** Price impact accrues as open interest imbalance fluctuates, but nothing is deducted yet.
3. **When you close:** The net price impact from open to close settles as part of your final PnL.

**Why this is better for you:** If the market rebalances while your position is open, you benefit from the reduced imbalance. You only pay for the net impact, not a worst-case estimate at entry.

* Impact is capped at **50 basis points (0.5%)**. If the calculated impact exceeds this cap, the excess is deducted upfront but stored in a claimable balance — you can reclaim it at any time from the **Claim** tab.
* If closing your position **reduces** pool imbalance, you receive a positive price impact (rebate).

**Example:** You open a $10,000 long when longs are dominant. By the time you close, shorts have caught up and the pool is more balanced. Instead of paying impact, you receive a small rebate because your exit helped rebalance the pool.

## Guaranteed Take Profit and Stop Loss

Your TP and SL orders are **guaranteed to execute at the trigger price you set**, regardless of how far the market moves past your trigger level.

**Example:** You set a stop loss at $1,900 for your ETH long. Due to extreme volatility, the oracle price gaps down to $1,850 — skipping right past your SL. HertzFlow still closes your position at $1,900 (your requested price), not the worse market price.

This guarantee applies to all TP/SL orders across every leverage tier, giving you reliable risk management even during high volatility.

## TP & SL Boundaries

To protect system solvency, TP and SL prices are bounded within a PnL range:

| Boundary                | Cap        |
| ----------------------- | ---------- |
| **Maximum Take Profit** | +2500% PnL |
| **Maximum Stop Loss**   | -80% PnL   |

**Example:** You open a long with 100 USDT collateral and 10x leverage ($1,000 position). Your maximum TP is at +2500% PnL = $2,500 profit. Your maximum SL is at -80% PnL = $80 loss.

{% hint style="info" %}
You can set both TP and SL simultaneously — whichever trigger hits first executes and automatically cancels the other. Both orders can be modified independently while your position is open.
{% endhint %}

If you add or remove collateral from a position, the valid TP/SL boundaries shift. You may need to update your trigger prices to stay within the -80% to +2500% PnL range.


---

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