# Overview: System Boundaries

# What the Nekuti Matching Engine includes

The Nekuti matching engine is a spot and derivatives exchange matching engine that supports an industry standard set of features, including:

• Core Matching Functionality
  • Instruments
    • Spot and Futures instruments (inverse, perpetual swaps, quanto swaps)
    • Fair Price and Last Price marking
    • Perpetual swap funding
  • Orders
    • Order Visibility, Fill types, Time in Force
    • Order cancels and amendments
    • CancelAll and CancelAllAfter (aka “Dead Man’s Hand”)
  • Fees
    • Fees configuration for maker, taker, visible, hidden, iceberg, and combinations thereof
  • Balances
    • Balance tracking and withdrawal validation
    • Initial Margin validation and tracking
    • Sub-accounts
  • Liquidation
    • Automatic Liquidation and ADL
  • Notifications
    • Generation of client executions
    • Live Order Book, Position, Execution subscriptions
  • Operations
    • Exchange suspension/resumption
    • Rate Limits
    • Risk-limit indexed Initial Margin and Maintenance Margin limits
    • Internal balance audit
    • Exchange statistics
• User Interface
  • The system includes a demonstration UI. In a production system, this would be replaced with system designed to meet your branding and feature requirements. This can be developed by us, or any other provider, using standard REST and WebSocket APIs.
• Deterministic execution
  • The engine ensures deterministic outcomes where orders are executed in a consistent and predictable manner
• Scalability
  • Capable of processing 1 million orders per second
  • Latency near or below 1 millisecond
• Security
  • User-facing components designed to withstand cyberattacks without compromising system stability, exposing internal implementations or customer data
• API Integration
  • Implements de-facto industry standard RESTful and WebSockets APIs

# What it does not include

• Wallet Management
  • Does not handle cryptocurrency wallets or the storage of user funds. The engine does approve withdrawals, but updates balances based on deposits reported by the exchanges wallet infrastructure.
• Order/Trade Database
  • The engine keeps a recent history of orders and trades for active querying during the live session. It does not keep records of older trades and orders, although it can be configured to write to a database designed to serve historical data.
• KYC/AML Compliance
  • An additional system is required for KYC/AML, and accounts should not be created in the engine until the KYC has been completed
• Notification distribution
  • The gateways can send notifications of order and liquidation events in a compact JSON format. An external component would be responsible for sending notifications over email, instant message, or other platforms.
• Funding and Marking calculations
  • The engine does not compute Marks or Funding prices, but takes these as an input. An external component would be responsible for computing a fair mark or funding rate for each instrument.
• Custody and Asset Storage
  • It does not manage custody of digital assets
• Risk Management for Traders
  • While it does support risk management features at an exchange level, individual risk management is outside its scope.