Discovery Markets
Discovery markets offer perpetual exposure to exotic assets and unique sectors that users generally cannot trade elsewhere. Users can take long or short positions without buying or receiving the underlying asset.
Small by design
These markets may have tighter order-size, position, leverage, and exposure limits than established markets. They can move to reduce-only, allowing existing positions to be reduced but not increased, or pause when the reference price is unreliable or liquidity is insufficient. A pause does not erase existing positions or guarantee an immediate exit; margin and liquidation risk remain.
Check the trading interface for a market's current limits and trading status.
How capacity could increase
There is no preset growth schedule. A limit increase depends on sustained demand, reliable price data, available liquidity, fill quality, and the ability to exit at the larger size. A review may leave limits unchanged or lower them. A short burst of trading or a higher index level alone does not justify expansion.
When capacity increases, the new limits and effective time are announced before they take effect. If risk rises, limits may be tightened or trading paused sooner.
Risks to understand before trading
- Price observations for a thin underlying market may be sparse or stale. Where an external price source is used, a recent update does not prove that a new underlying trade occurred or that the reference price is executable at size.
- Available liquidity may mean wider spreads, smaller fills, or no fill.
- Funding can become expensive when market pricing differs from the index. It is not a substitute for executable liquidity.
- Leverage magnifies losses. A price gap can move an account toward liquidation before a trader can exit.
Read Funding for funding mechanics. TCGX has its own index method and exposure limit; for an overview of TCGX, see n1.xyz/tcgx.