hybrid-perps-spec

Order Routing Scenarios

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SC-RT-001: Small Market Order → Internal Internalization

Preconditions:

• BTC HL mark price: $100,000
• Routing threshold: $10,000
• User available balance: $1,000; leverage: 10x

Steps:

1. User places BTC long market order, qty 0.05 BTC
2. Router computes notional: 0.05 × 100,000 = $5,000 ≤ $10,000 → INTERNAL

Expected Results:

• Fill at HL current best ask (taker price)
• Create INTERNAL position (position_source = INTERNAL)
• Platform auto-creates mirror short position (internal ledger only)
• User margin frozen: $500 ($5,000 / 10x)
• Routing log: decision = INTERNAL, latency < 5ms

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SC-RT-002: Large Market Order → HL Proxy Execution

Preconditions:

• ETH HL mark price: $4,000
• Routing threshold: $10,000
• User available balance: $5,000; leverage: 5x

Steps:

1. User places ETH long market order, qty 5 ETH
2. Router computes notional: 5 × 4,000 = $20,000 > $10,000 → HYPERLIQUID
3. Send open order instruction to HL platform account

Expected Results:

• HL returns fill receipt: fill_price, filled_size, fee
• entry_price updated to fill_price (fill price correction)
• User margin frozen: $4,000 ($20,000 / 5x)
• HL platform account merged long position increases by 5 ETH

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SC-RT-003: Same Asset, Two Opens — Split Routing

Preconditions:

• BTC mark price: $100,000; threshold: $10,000
• User has sufficient balance

Steps:

1. First open: BTC long, notional $5,000 → INTERNAL
2. Second open: BTC long, notional $15,000 → HYPERLIQUID

Expected Results:

• User holds two independent BTC long positions:
  • BTC INTERNAL ($5K, own entry_price)
  • BTC HYPERLIQUID ($15K, own entry_price)
• Cross mode: both share account equity; each has independent entry_price
• Isolated mode: each liquidated independently, no cross-impact
• Close routing follows position source (INTERNAL closes internally; HYPERLIQUID closes via HL)

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SC-RT-004: Force-Route to HL — Net Exposure at Limit

Preconditions:

• BTC net exposure at $1M limit (internalization stopped for BTC)
• User places BTC long, notional $3,000 (would normally route INTERNAL)

Steps:

1. Router checks BTC net exposure → at limit
2. Force-route to HYPERLIQUID (even though $3,000 < $10,000 threshold)

Expected Results:

• HYPERLIQUID position created
• Routing log records force reason: net_exposure_limit
• User sees no difference (same price, same receipt format)

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SC-RT-005: Force-Route to HL — HL Latency Exceeded

Preconditions:

• HL WebSocket latency: 600ms (exceeds 500ms threshold)
• User places ETH long, notional $5,000

Steps:

1. Router detects HL channel latency > 500ms → pause internalization
2. Force-route to HYPERLIQUID

Expected Results:

• Route to HYPERLIQUID (conservative fallback)
• Risk alert: HL latency > 500ms
• Routing log records force reason: hl_latency_exceeded

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SC-RT-006: Close Order Routing Follows Original Position

Preconditions:

• User holds: BTC INTERNAL long + BTC HYPERLIQUID long

Steps:

1. User initiates close of BTC INTERNAL position
2. User initiates close of BTC HYPERLIQUID position

Expected Results:

• BTC INTERNAL close → L3 internal settlement (no HL instruction sent)
• BTC HYPERLIQUID close → L4 sends market close order to HL
• Cross-system offset forbidden: INTERNAL cannot offset HYPERLIQUID

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SC-RT-007: Consecutive Opens Trigger Hedging

Preconditions:

• BTC mark price: $100,000; routing threshold: $10,000
• Current BTC net exposure: $80,000 (long direction)
• Hedging threshold: $100K triggers 50% hedge

Steps:

1. User A places BTC long order, notional $5,000 → INTERNAL ($5K < $10K threshold)
2. User B places BTC long order, notional $8,000 → INTERNAL
3. User C places BTC long order, notional $9,000 → INTERNAL

Expected Results:

• All three orders route to INTERNAL (each notional < $10K)
• Cumulative net exposure: $80K + $5K + $8K + $9K = $102K
• After the third fill, L6 detects net exposure > $100K
• L6 triggers hedge: opens BTC short ~$51K on HL (50% × $102K)
• Hedge instruction routes through L4 to HL, independent from user orders
• Users remain unaware (still see normal INTERNAL positions)

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SC-RT-008: Natural Hedging from Multi-Directional Users

Preconditions:

• ETH mark price: $4,000; routing threshold: $10,000
• Current ETH net exposure: $0

Steps:

1. User A places ETH long order, notional $8,000 → INTERNAL (platform holds short $8K)
2. User B places ETH short order, notional $8,000 → INTERNAL (platform holds long $8K)

Expected Results:

• Both orders route to INTERNAL
• Net exposure: $8K - $8K = $0 (long/short fully offset)
• No hedging triggered
• Platform earns both trading fees + future funding fees
• This is the ideal state for the B-book model: zero directional risk while earning fees