Q token mark QUADPublic Accountability

The trading flow

How a trade moves through Liquid

From a quote you haven't committed to, through an open position, all the way to a settled balance — and where the brakes are at every step.

The short version

Liquid lets a trade move fast without letting "fast" mean "final."

Every step — a quote, an order, an open position, a liquidation — is its own clearly-labelled state. Only the last step, settlement, actually changes a real balance. Everything before it is a plan, a request, or a snapshot that can still expire, be refused, or be undone.

The trade, step by step

The path a trade takes, and what each step does and doesn't mean.

StepWhat it meansWhat it does not mean
QuoteA price you're shown, with the fee, route, slippage limit, and an expiry. You haven't agreed to anything yet.Not a trade, not custody of your money, and not a promise the price will hold.
OrderYou commit to a quote. The order can be pending, filled, partly filled, cancelled, expired, or refused.An accepted order isn't a final balance yet — settlement hasn't recorded it.
PositionOnce filled, you hold a position: your collateral, what you owe, your exposure, and how close you are to liquidation.A position isn't cash in your wallet, and exposure isn't backing or spendable balance.
FundingWhile a position is open, small funding costs or credits build up, to be squared at settlement.Funding isn't yield, a reward, or a payout you're promised.
Close or reduceYou ask to close or shrink the position; it moves toward settlement through receipts.Closing isn't instant cash, and the exit value isn't guaranteed.
SettlementThe final step. Only here does a real balance change, once settlement accepts the request.Nothing before this — quote, order, position, or the engine — can move a balance on its own.

When a position goes wrong

If a position runs out of room it gets liquidated. That should read like a machine following rules, not a story about winners and losers.

Risk check

Before anything continues, Liquid checks your exposure against its limits.

Threshold hit

If a position crosses its liquidation line, it gets flagged.

Candidate

Being flagged isn't being liquidated. It's a marked candidate that still has to follow the proper path.

The plan

Liquidation records the condition, a snapshot of the position, and the steps it will take.

Hand to settlement

Like everything else, it can't change balances itself — it hands a request to settlement.

Surplus or shortfall

Anything left over, or any shortfall and backstop, stays tied to a receipt and a stated purpose.

What a wrapper is

A wrapper is a label that says "this stands for something else."

For example, a token on Liquid that represents an asset held somewhere else. Wrappers are useful, but they're only as honest as the rules around them — so Liquid keeps those rules in plain view.

It names what it stands for

A wrapper shows what it represents, where the proof of backing lives, and its current state.

It says when backing is shaky

If redemption is turned off, degraded, or the proof is stale or missing, that stays visible.

It is not the real thing

Holding a wrapper isn't owning the underlying asset, controlling a vault, or having Core admit it.

No rescue by relabelling

Reserve and backstop labels are for a stated purpose. They are not a guaranteed exit or a hidden bailout.

What Liquid is not

A few things this page is careful never to be mistaken for.

Not a live exchangeThese pages don't open trading, leverage, or market access. The market is closed.
Not yieldFunding, surplus, or fee labels aren't rewards, interest, or anything you're owed.
Not guaranteedQuotes and orders can expire, be refused, or sit pending. Nothing here is a sure fill.
Not a hidden trading deskInventory, fees, and surplus stay tied to receipts and named owners — no secret profit.
Not adviceRisk and position labels explain a state. They aren't investment advice or a strategy.
Not Core valueSpeed, liquidity, and attention on Liquid don't create QUAD value or get anything admitted to Core.