Dynamic Liquidity Model

In trading, efficiently matching buy and sell demand is a core challenge. Traditional exchanges that rely on the order book model can fail when market liquidity is insufficient, especially during large trades, where liquidity exhaustion prevents users from executing orders. MC Markets uses a unique automated liquidity model that fundamentally solves this “liquidity dilemma.”

The core of this model is the liquidity pool, built through capital contributions from liquidity providers (LPs). Abandoning the “waiting for counterparties” logic, the system instead executes trades directly from the liquidity pool using preset algorithms.

Algorithm-Driven Liquidity

Our model replaces traditional market makers with algorithms. When you initiate a trade, the algorithm instantly withdraws or injects funds from the liquidity pool to complete the transaction without waiting for another user’s order. This ensures that as long as there are sufficient funds in the pool, trades can be executed instantly under any market condition.

No Counterparty Limitation

In this model, the presence or absence of a counterparty (and even the trade size) is no longer a decisive factor in determining whether your order is filled. This greatly enhances the user experience, making trading smoother and more predictable.

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Price Impact and Liquidity Depth

Although our model guarantees instant execution, very large trades can still influence the final transaction price. This is known as Price Impact.

Price Impact is the deviation between your expected execution price and the actual execution price.

This deviation is directly correlated with the size of the liquidity pool. The larger the pool and the deeper the liquidity, the smaller the price impact will be for the same trade size. Before placing an order, we will estimate and display this impact cost so you can have a clear understanding of your trade in full.