code.vegaprotocol.io/vega@v0.79.0/core/integration/features/liquidity-provision/0044-LIME-060.feature (about)

     1  Feature: LP can always remove commitment
     2  
     3  # For a market that is in continuous trading and a single LP has committed liquidity:
     4  # The LP can cancel their commitment at any time (though this may involve incurring a penalty) (0044-LIME-060)
     5  
     6    Background:
     7      Given the following network parameters are set:
     8        | name                                                  | value |
     9        | market.liquidity.bondPenaltyParameter                 | 1     |
    10        | network.markPriceUpdateMaximumFrequency               | 0s    |
    11        | limits.markets.maxPeggedOrders                        | 2     |
    12        | validators.epoch.length                               | 5s    |
    13        | market.liquidity.earlyExitPenalty                     | 0.25  |
    14        | market.liquidity.stakeToCcyVolume                     | 1.0   |
    15        | market.liquidity.sla.nonPerformanceBondPenaltySlope   | 0.19  |
    16        | market.liquidity.sla.nonPerformanceBondPenaltyMax     | 1     |
    17      And the liquidity monitoring parameters:
    18        | name               | triggering ratio | time window | scaling factor |
    19        | lqm-params         | 0.1              | 24h         | 1              |  
    20      And the average block duration is "1"
    21      And the simple risk model named "simple-risk-model-1":
    22        | long | short | max move up | min move down | probability of trading |
    23        | 0.1  | 0.1   | 60          | 50            | 0.2                    |
    24      And the fees configuration named "fees-config-1":
    25        | maker fee | infrastructure fee |
    26        | 0.004     | 0.001              |
    27      And the price monitoring named "price-monitoring-1":
    28        | horizon | probability | auction extension |
    29        | 1       | 0.99        | 5                 |
    30      And the liquidity sla params named "SLA":
    31        | price range | commitment min time fraction | performance hysteresis epochs | sla competition factor |
    32        | 0.01        | 0.5                          | 1                             | 1.0                    |
    33      And the markets:
    34        | id        | quote name | asset | liquidity monitoring | risk model          | margin calculator         | auction duration | fees          | price monitoring   | data source config     | linear slippage factor | quadratic slippage factor | sla params |
    35        | ETH/DEC21 | ETH        | ETH   | lqm-params           | simple-risk-model-1 | default-margin-calculator | 1                | fees-config-1 | price-monitoring-1 | default-eth-for-future | 0.5                    | 0                         | SLA        |
    36      And the parties deposit on asset's general account the following amount:
    37        | party  | asset | amount     |
    38        | party1 | ETH   | 100000000  |
    39        | party3 | ETH   | 100000000  |
    40        | party4 | ETH   | 100000000  |
    41      And the parties submit the following liquidity provision:
    42        | id  | party  | market id | commitment amount | fee   | lp type     |
    43        | lp1 | party1 | ETH/DEC21 | 1000              | 0.001 | submission  |
    44      And the parties place the following orders:
    45        | party  | market id | side | volume | price | resulting trades | type       | tif     | reference |
    46        | party3 | ETH/DEC21 | buy  | 1000   | 900   | 0                | TYPE_LIMIT | TIF_GTC | p3b1      |
    47        | party3 | ETH/DEC21 | buy  | 10     | 1000  | 0                | TYPE_LIMIT | TIF_GTC | p3b2      |
    48        | party4 | ETH/DEC21 | sell | 1000   | 1100  | 0                | TYPE_LIMIT | TIF_GTC | p4s1      |
    49        | party4 | ETH/DEC21 | sell | 10     | 1000  | 0                | TYPE_LIMIT | TIF_GTC | p4s2      |
    50  
    51    Scenario: 001, In a continuous market, the single LP can cancel their commitment
    52     When the opening auction period ends for market "ETH/DEC21"
    53     And the auction ends with a traded volume of "10" at a price of "1000"
    54     Then the market data for the market "ETH/DEC21" should be:
    55       | mark price | trading mode            | target stake | supplied stake | open interest | best static bid price | static mid price | best static offer price |
    56       | 1000       | TRADING_MODE_CONTINUOUS | 1000         | 1000           | 10            | 900                   | 1000             | 1100                    |
    57     # Place LIMIT orders to cover our commitment
    58     And the parties place the following orders:
    59       | party  | market id | side | volume | price | resulting trades | type       | tif     | reference     |
    60       | party1 | ETH/DEC21 | buy  | 10     | 999   | 0                | TYPE_LIMIT | TIF_GTC | party1-order1 |
    61       | party1 | ETH/DEC21 | sell | 10     | 1001  | 0                | TYPE_LIMIT | TIF_GTC | party1-order2 |
    62     When the network moves ahead "1" blocks
    63     Then the liquidity provisions should have the following states:
    64       | id  | party  | market    | commitment amount | status           |
    65       | lp1 | party1 | ETH/DEC21 | 1000              | STATUS_ACTIVE    |
    66     And the parties should have the following account balances:
    67       | party  | asset | market id | margin  | general  | bond  |
    68       | party1 | ETH   | ETH/DEC21 | 1200    | 99997800 | 1000  |    
    69     And the insurance pool balance should be "0" for the market "ETH/DEC21"
    70  
    71     # Now the party try to cancel their commitment
    72     When party "party1" cancels their liquidity provision for market "ETH/DEC21"
    73     When the network moves ahead "3" blocks
    74  
    75    # Until we end the epoch the LP remains pending
    76     Then the liquidity provisions should have the following states:
    77       | id  | party  | market    | commitment amount | status         |
    78       | lp1 | party1 | ETH/DEC21 | 0                 | STATUS_PENDING |
    79  
    80     And the parties should have the following account balances:
    81       | party  | asset | market id | margin  | general  | bond |
    82       | party1 | ETH   | ETH/DEC21 | 1200    | 99997800 | 1000 |    
    83     And the insurance pool balance should be "0" for the market "ETH/DEC21"
    84  
    85     # Now the epoch is over we should see a cancelled LP and 
    86     # 25% of the bond is given to the insurance pool
    87     When the network moves ahead "3" blocks
    88     Then the liquidity provisions should have the following states:
    89       | id  | party  | market    | commitment amount | status           |
    90       | lp1 | party1 | ETH/DEC21 | 0                 | STATUS_CANCELLED |
    91     And the parties should have the following account balances:
    92       | party  | asset | market id | margin  | general  | bond |
    93       | party1 | ETH   | ETH/DEC21 | 1200    | 99998550 | 0    |    
    94     And the insurance pool balance should be "250" for the market "ETH/DEC21"