# Portfolio Dominance ## Order Consolidation The Matching Engine optimization algorithm employs a mechanism to consolidate orders on options on the same underlying asset across types and strikes, without assumptions about an option pricing model or underlying stochastic process. ## Protocol Asset Side ≥ Protocol Liability Side The protocol optimizes over how much to s[ell to Buy Orders](#user-content-fn-1)[^1] and how much to buy from Sell Orders at auction subject to the liability of the protocol not exceeding its positive payoff at all states of the world at expiry. The portfolio of bought options must 'dominate' the portfolio of sold options. {% hint style="info" %} Matching is done under strict riskless conditions. The engine takes no market or credit risk. {% endhint %} [^1]: --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.ithacaprotocol.io/docs/architecture/pre-match-processing/portfolio-dominance.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.