Advanced Order Types

Summary

Terrace’s Advanced Order Types give traders institutional-grade control over how their orders are executed. From Limit and Market orders to algorithmic strategies like TWAP (Time-Weighted Average Price) and VWAP (Volume-Weighted Average Price), Terrace lets every user trade with the same precision and flexibility used by professional desks. Limit, Market, and Iceberg Orders are available on any combination of venues. All orders can be placed seamlessly across any chain or venue, unified through both of Terrace’s proprietary OEMS’ (Order and Execution Management Systems). Terrace’s architecture does not rely on vaults.

Terrace provides a range of execution strategies that let users trade size or manage market exposure with institutional precision.

Market

A market order executes immediately using the best available liquidity at the time of submission. Terrace’s routing engine aggregates the top-of-book prices from every connected venue, compares depth, and fragments the parent order into smaller child orders to minimize execution variance. Every leg is monitored. If a venue fails to confirm within its latency window, that fragment is cancelled and reallocated elsewhere. The end result is blended execution across multiple liquidity sources that finishes in one transaction on the user’s side.

Limit

Limit orders allow precise execution. When a user sets a limit, Terrace posts the order to whichever venues offer the best combination of depth, reliability, and fees. The system continuously checks order-book movements: if the market changes, Terrace will cancel and repost across venues as pricing updates, without altering the original limit price. Unlike a typical single-venue limit order that sits idle on one pool, Terrace maintains visibility across all venues. If another exchange’s book becomes more favourable, it cancels and reposts to that venue automatically. The platform also supports “post-only” mode, ensuring orders never take liquidity unless explicitly configured to.

TWAP (Time-Weighted Average Price)

TWAP is designed for large orders that would otherwise move the market if executed at once. The algorithm breaks a parent order into a sequence of smaller slices, executing them at fixed time intervals. Each slice is treated as an independent trade: simulated, routed, and filled based on real-time liquidity conditions. All slices are visible to the user in the trade log, but counterparties only see the individual child orders, never the full parent size. This keeps execution discreet while achieving a stable blended price close to the time-weighted average.

When executing a TWAP, users can adjust the jitter setting, which adds small random variation to timing and size to make execution less predictable to other market participants.

Terrace offers two both dynamic TWAPs and Fixed Leg TWAPs. With a dynamic TWAP, between slices, the system reassesses the market: if volatility rises, intervals may lengthen or slice size may decrease; if liquidity deepens, pacing can speed up. With a fixed leg TWAP, the execution patterns of the slices remain in fixed, equal-sizes across the execution period.

VWAP (Volume-Weighted Average Price)

VWAP targets participation proportional to total market volume, effectively following the flow of the market rather than fighting it. Terrace measures traded volume across all connected venues and adjusts pacing so that total execution aligns with the overall rate of activity. If market volume doubles, the strategy automatically increases its participation to maintain the same relative footprint; if liquidity dries up, it slows down. VWAP is particularly useful for foundations or funds entering or exiting large token positions gradually without signaling intent — execution remains natural and proportionate to actual trading conditions. Internally, VWAP relies on the same routing layer as TWAP, but weighting logic is based on live volume curves rather than time intervals; the dynamic VWAP is currently only available on CeFi venues.

In addition to standard VWAP, traders can select strategy presets (Simple, Impact Minimization, Target Participation Rate, Market Maker, Aggressive Maker, Aggressive Taker, and Target Time) in order to bias pacing and venue behaviour. An Advanced toggle exposes controls (e.g., participation bands, maker/taker bias, max-slippage per slice, venue preference) for finer execution tuning; dynamic VWAP remains CeFi-only for now.

Iceberg

Icebergs are large limit orders where only a small visible portion is shown to the market. When the visible part fills, Terrace automatically refreshes the next portion at the same or adjusted price. This continues until the total parent size completes or is cancelled. Icebergs are supported on centralized venues that expose order-book visibility; on DEXs, Terrace simulates similar behaviour by slicing swaps into smaller atomic orders. This approach minimizes signalling risk, where other traders see normal flow rather than a single large sell or buy wall.