Vault Mechanics Overview

The Passage Vault exists to help increase the frequency of order matching on the Passage platform. Should a passage order remain open (unmatched), the vault may take the opposing side of the trade if it believes it is profitable. In most cases, the “suggested price” we shown will give a vault execution within a few minutes. The vault will not immediately take the opposing side of a trade to give time for users to organically trade against each other. The trading is algorithmic and automated based on an algorithm developed by Bracket Labs. There are many reasons why the vault may not choose to take a trade even at the suggested price, which may include reasons such as: too much exposure already, not enough available funds, a belief that the currently recommended price is about to change due to short term price movements, and so on. From a user's perspective, it is an identical experience if the opposing trade side was purchased by another user or the vault.