Risks & Considerations
Risks & Considerations
While Block Trade offers a powerful way to execute large token swaps with minimal slippage, there are important risks and factors to be aware of before using the feature.
Asset Locking
⚠️ When you submit a Block Trade, your tokens are locked for settlement.
When you select Prioritize Quantity, your assets remain locked until the full order is matched or the expiration time is reached.
If using Prioritize Speed, only the immediately filled portion is swapped; unfilled assets are not locked.
You can't use locked tokens for other activities until the Block Trade process is completed.
Liquidity Risks
⚠️ Large trades depend on available liquidity from market makers and centralized exchanges (CEXs).
Full fills may require waiting for sufficient liquidity.
In extremely volatile or low-liquidity markets, some orders may take longer to complete or may fail and unlock without settlement.
Liquidity conditions vary between networks and tokens.
💡 If you need guaranteed instant execution, Prioritize Speed may be a better choice than Prioritize Quantity.
Settlement Time
⚠️ Full settlement may not be immediate.
In cases where Loopring’s internal pool is used (for Prioritize Quantity trades), the system may require up to 24 hours to rebalance and complete the swap.
If full settlement can't be achieved within the timeframe, your tokens will be returned to your account.
Price Fluctuation
⚠️ Token prices can change significantly while waiting for a full match.
The quoted price when submitting a Block Trade is not guaranteed until a market maker accepts it.
Large price movements during the matching window may cause your order to expire without settlement.
💡 Monitor market conditions when initiating large Block Trades — especially during times of high volatility.
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