# Orders

Points for unfilled orders are awarded based on proximity to filled price or theoretical model mid price. The closer the order is to either the executed price (or the theoretical mid price if no fill took place), the more points earned. 

Moreover, the system differentiates one-way and two-way orders to encourage greater liquidity provision. 

1. **One-way order:** an order to either buy or sell that does NOT have a corresponding opposite side order in the same product and auction
2. **Two-way order:** an order to either buy or sell that HAS a corresponding opposite side order in the same product and auction

Same product here means the product matches payoff, strike and expiry. 

## **One-Way Order Points** 

Points for one-way unfilled orders are awarded based on the following formula each day.

<figure><img src="/files/xcllW6rfZOhzpekMrUq3" alt=""><figcaption></figcaption></figure>

The formula has three components.&#x20;

The first term is a scaling factor based on the number of auctions for which that order was live on that day. An order open over several auctions will earn more points. However, each passing auction awards slightly fewer points.&#x20;

The second term aggregates the order total volume, considering each auction as a separate order and scaling the order size based on its proximity to an executable price.&#x20;

The third term is just a unit adjustment factor to convert volumes into points.&#x20;

> ONE-WAY ORDER EXAMPLE
>
> A one-way order for 1 ETH volume call with order price 200 and standard deviation 20 that lasted 3 auctions with model price 210, 220 and 230 would earn:&#x20;
>
> (30.5-1)\*( 1 \* e-0.5 + 1 \* e-1 +1 \* e-1.5)\* 1,0000.2\*50 =    0.577\*(0.606 + 0.36 +0.22)\* 100 = 69.14 points
>
> \
> Z1 = (210-200) / 20 = 0.5
>
> Z2 = (220-200) / 20 = 1
>
> Z3 = (230-200) / 20 = 1.5

## **Two-Way Order Points**

Two-way order events are order events that have another order event in the same auction and product matching payoff, strike, expiry and with an opposite side.&#x20;

Points for two-way unfilled orders are awarded based on the following formula each day.

<figure><img src="/files/kzX71rJX4zFlQRA5P5m5" alt=""><figcaption></figcaption></figure>

The formula for two-way orders is similar to the one-way order except for the scaling parameters. Open two-way orders receive more points, and the proximity scaling is based on the proximity of bid and offer prices rather than on the proximity to the clearing price.&#x20;

> TWO-WAY ORDER EXAMPLE
>
> A two-way order for 1 ETH volume bid and 2 ETH volume offer with bid price 200, offer price 220 and standard deviation 20 that lasted 2 auctions would earn:&#x20;
>
> (20.75-1)\*( 2\*3 \* e-0.5)\* 1,0000.2\*50 = 0.84\*(3 \* 2\* 0.606)\* 100 = 306.02 points


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