What is Reference Price Protection?

Bitvavo's reference price protection ensures your orders do not fill at prices significantly different from the wider crypto market. This feature protects you during sudden price movements or periods of low liquidity. Read on to learn how it works and which order types it applies to.

Bitvavo's order book represents just one view of the market. During sudden price moves or when trading volume is low, our prices can briefly drift from where the rest of the market is trading. Reference price protection checks for this discrepancy before your order fills.

What does reference price protection do?

The reference price shows where an asset is trading across the market as a whole, rather than on Bitvavo alone. We calculate this using price data from several external exchanges. In the Bitvavo app, this is referred to as the "wider market".

Before your order fills, we check that the execution price is close enough to the reference price. If it is too far away, your order will not fill.

Why does it exist?

Bitvavo's price can briefly drift from where an asset is trading elsewhere, usually during sudden price moves or when little is being traded. Without this check, your order could fill at a price well away from the rest of the market. This protection stops that from happening.

Which orders does it apply to?

Reference price protection applies to market orders, Price guarantee orders, and limit orders. It is most likely to trigger during sudden price moves, when little is being traded, or in brief moments when Bitvavo's price and the wider market drift apart.

What happens if it is triggered?

• Market orders: The part of your order that is within the allowed range fills, and we cancel the rest. You will see this as a partial fill. If none of the order is within range, nothing fills and your balance remains unchanged. Anything that does not fill stays in your account.
• Price guarantee orders: The check runs before you see a price. If Bitvavo cannot offer a price within range, the Price guarantee option is not available for that trade. You can use a market order instead, but the same check applies. For some assets, Price guarantee is the only order type available. If the check fails for one of those, trading is temporarily unavailable until the price settles.
• Limit orders: The check also runs when your limit order fills. Setting your own price does not skip this protection. If Bitvavo's price and the wider market are far apart, your order may not fill until they align again.

An example of reference price protection

The numbers below are made up to show how the feature works. The actual allowed range differs per market.

Suppose Bitcoin is trading at around €100,000 across the rest of the market, making that the reference price. On Bitvavo, the price has briefly jumped higher. If the allowed range is 2%, your order can fill at up to €102,000. Anything above that is considered too far from the market.

If you place a market order to buy 5 BTC on Bitvavo:

• 2 BTC are available at €101,500. This is within the range, so these fill.
• 3 BTC are available at €102,500. This is too far above the reference price, so these do not fill.

You end up with 2 BTC. We cancel the rest, and the funds for those 3 BTC stay in your account.

Nothing was wrong with Bitvavo's spread in this scenario. The two prices sit close together, so spread price protection had no reason to trigger. It was Bitvavo's price as a whole that moved away from the rest of the market, and that is what this check picks up.

If you had used a Price guarantee order in this situation, you would not have seen a price at all. Because €102,500 is outside the range, the Price guarantee is not offered until the price settles.

What you can do

If your order is impacted by reference price protection, you can:

• Try placing your order again in a moment after the market settles.
• Set your own price with a limit order and wait for the market to reach it, keeping in mind that the reference price check still applies when the order fills.

Frequently asked questions