PositionRouter

Manages the creation and execution of position orders with a queue-based system

PositionRouter

The PositionRouter is a crucial component of the Satoshi Perps protocol that implements a gas-efficient queue-based system for position execution. It allows users to submit position requests that are executed in batches by keepers, significantly reducing gas costs for users.

For visual flowcharts of the position creation and execution process, see the Protocol Flow Charts page.

Contract Overview

The PositionRouter handles:

• Creating requests to increase or decrease positions
• Queueing position requests for batch execution
• Executing position requests in an efficient manner
• Managing execution fees for position requests
• Providing callbacks to notify external contracts when positions are executed

The PositionRouter is designed to handle high-volume trading with minimal gas costs per trade.

Key Functions

Position Creation

function createIncreasePosition(
    address[] memory _path,
    address _indexToken,
    uint256 _amountIn,
    uint256 _minOut,
    uint256 _sizeDelta,
    bool _isLong,
    uint256 _acceptablePrice,
    uint256 _executionFee,
    bytes32 _referralCode,
    address _callbackTarget
) external payable returns (bytes32);

Creates a request to increase a position. Returns a unique request key.

function createIncreasePositionETH(
    address[] memory _path,
    address _indexToken,
    uint256 _minOut,
    uint256 _sizeDelta,
    bool _isLong,
    uint256 _acceptablePrice,
    uint256 _executionFee,
    bytes32 _referralCode,
    address _callbackTarget
) external payable returns (bytes32);

Creates a request to increase a position using ETH as the input token.

Position Decrease

function createDecreasePosition(
    address[] memory _path,
    address _indexToken,
    uint256 _collateralDelta,
    uint256 _sizeDelta,
    bool _isLong,
    address _receiver,
    uint256 _acceptablePrice,
    uint256 _minOut,
    uint256 _executionFee,
    bool _withdrawETH,
    address _callbackTarget
) external payable returns (bytes32);

Creates a request to decrease a position.

Position Execution

function executeIncreasePosition(bytes32 _key, address _executionFeeReceiver) external returns (bool);

Executes a queued increase position request. Returns a boolean indicating execution success.

function executeDecreasePosition(bytes32 _key, address _executionFeeReceiver) external returns (bool);

Executes a queued decrease position request. Returns a boolean indicating execution success.

Batch Execution

function executeIncreasePositions(uint256 _endIndex, address payable _executionFeeReceiver) external;

Executes multiple increase position requests in a single transaction.

function executeDecreasePositions(uint256 _endIndex, address payable _executionFeeReceiver) external;

Executes multiple decrease position requests in a single transaction.

Request Queue Mechanics

The PositionRouter maintains two separate queues:

1. Increase Position Queue: For requests to open or add to positions
2. Decrease Position Queue: For requests to reduce or close positions

Each request is stored with:

• A unique request key
• The parameters needed for execution
• A timestamp indicating when the request was created
• Whether the request has been executed

Requests have a limited lifespan defined by the maxTimeDelay parameter. If not executed within this time window, they can be cancelled by the requester.

Callback System

The PositionRouter implements a callback mechanism to notify external contracts when positions are executed:

function gmxPositionCallback(bytes32 positionKey, bool isExecuted, bool isIncrease) external;

When a position is executed, if a callback target was specified in the request, this function is called on the target contract to notify it of the execution result. The callback target must implement the IPositionRouterCallbackReceiver interface.

Execution Fee Mechanism

To incentivize keepers to execute position requests, the PositionRouter requires an execution fee for each request:

• Users include an execution fee when creating a position request
• The fee is refunded if the request fails to execute
• When a request is executed successfully, the fee is sent to the keeper

The minimum execution fee is defined by the minExecutionFee parameter and can be adjusted by the contract admin.

Integration with Vault

The PositionRouter interacts with the Vault contract to execute positions:

1. When an increase position request is executed, the PositionRouter:
   • Transfers tokens from the user (if not already done)
   • Calls Vault’s increasePosition function
2. When a decrease position request is executed, the PositionRouter:
   • Calls Vault’s decreasePosition function
   • Handles token transfers back to the user

Callback Gas Limits

The PositionRouter implements configurable gas limits for position execution callbacks:

uint256 public callbackGasLimit;
mapping (address => uint256) public customCallbackGasLimits;

• callbackGasLimit: Default gas limit for all callbacks
• customCallbackGasLimits: Custom gas limits for specific callback targets

Admins can set these limits using:

function setCallbackGasLimit(uint256 _callbackGasLimit) external;
function setCustomCallbackGasLimit(address _target, uint256 _gasLimit) external;

Position Cancellation

Users can cancel their pending position requests if they haven’t been executed within the allowed time window:

function cancelIncreasePosition(bytes32 _key, address _executionFeeReceiver) external;
function cancelDecreasePosition(bytes32 _key, address _executionFeeReceiver) external;

These functions validate that:

• The request exists
• The caller is the request creator
• The request has not been executed
• The execution timeframe has expired

Position Keepers

The PositionRouter uses a keeper system to manage who can execute position requests:

mapping (address => bool) public isPositionKeeper;

Only approved position keepers can execute position requests, controlled by:

function setPositionKeeper(address _account, bool _isActive) external;

Security Considerations

The PositionRouter implements several security features:

• Frontrunning Protection: Price bounds protect users from price manipulation
• Slippage Protection: Minimum output amounts ensure fair execution
• Delay Parameters: Configurable minimum and maximum delay between request and execution
• Access Control: Role-based permissions for execution and configuration
• Circuit Breakers: The contract can be paused in emergency situations
• Gas Limit Controls: Prevents callback functions from using excessive gas

Example Usage

1. Submit an Increase Position Request

   A trader wants to open a 5x long ETH position with 1 ETH as collateral.

   const path = [wethAddress]; // No token conversion needed
   const indexToken = wethAddress; // Long ETH
   const amountIn = ethers.utils.parseEther("1"); // 1 ETH
   const minOut = 0; // No swap, so minOut is 0
   const sizeDelta = ethers.utils.parseUnits("5", 30); // 5x leverage
   const isLong = true;
   const acceptablePrice = ethers.utils.parseUnits("2000", 30); // Max acceptable ETH price
   const executionFee = ethers.utils.parseEther("0.01"); // Execution fee
   const referralCode = ethers.utils.formatBytes32String(""); // No referral
   const callbackTarget = ethers.constants.AddressZero; // No callback
   
   const requestKey = await positionRouter.createIncreasePositionETH(
     path,
     indexToken,
     minOut,
     sizeDelta,
     isLong,
     acceptablePrice,
     executionFee,
     referralCode,
     callbackTarget,
     { value: amountIn.add(executionFee) }
   );
   

2. Keeper Executes the Request

   A keeper monitors the pending requests and executes them.

   // Keeper executes the position
   await positionRouter.executeIncreasePosition(
     requestKey, 
     keeperAddress
   );
   

3. Submit a Decrease Position Request

   Later, the trader wants to close half of their position.

   const path = [wethAddress]; // No token conversion
   const indexToken = wethAddress;
   const collateralDelta = 0; // Don't withdraw collateral
   const sizeDelta = ethers.utils.parseUnits("2.5", 30); // Close half the position
   const isLong = true;
   const receiver = traderAddress;
   const acceptablePrice = ethers.utils.parseUnits("1900", 30); // Min acceptable ETH price
   const minOut = 0; // No minimum output for collateral
   const executionFee = ethers.utils.parseEther("0.01");
   const withdrawETH = true; // Receive ETH instead of WETH
   const callbackTarget = ethers.constants.AddressZero;
   
   const requestKey = await positionRouter.createDecreasePosition(
     path,
     indexToken,
     collateralDelta,
     sizeDelta,
     isLong,
     receiver,
     acceptablePrice,
     minOut,
     executionFee,
     withdrawETH,
     callbackTarget,
     { value: executionFee }
   );
   

Batch Execution Efficiency

One of the PositionRouter’s key features is batch execution, which allows keepers to execute multiple position requests in a single transaction:

// Execute up to 10 increase positions in one transaction
await positionRouter.executeIncreasePositions(10, keeperAddress);

// Execute up to 10 decrease positions in one transaction
await positionRouter.executeDecreasePositions(10, keeperAddress);

This significantly reduces the average gas cost per position by amortizing fixed gas costs across multiple executions.