# Trading Layer
Pumpkin’s trading layer is designed to support live trading. That imposes a stricter requirement than “a DEX UI”:
* execution must be fast enough to follow a room in realtime,
* state must be verifiable enough to prevent performance theater,
* and the terminal must be powerful enough for professional flows without leaving the surface.
***
### Spot Aggregation (Multi-chain)
Pumpkin supports onchain spot trading across Solana, Base, BSC, and the broader EVM ecosystem, aggregating liquidity across mainstream DEX venues and routing paths.
#### Routing philosophy: optimize expected outcome, not only quoted price
A real router optimizes a composite objective:
* output after impact and fees
* execution success probability
* latency penalties
* slippage bounds
* fallback path reliability
{% @mermaid/diagram content="flowchart LR
Q\[Quote Collection] --> P\[Path Generation]
P --> S\[Simulation + Slippage Bounds]
S --> X\[Execution + Fallback]
X --> R\[Receipt Parsing]
R --> U\[Fill Events + Trace Links]" %}
### ZK Perpetuals Engine
#### Design goal
Deliver high-performance perpetual trading with:
* deterministic matching and risk rules,
* verifiable accounting (PnL, funding, liquidation),
* and an execution layer that cannot “cheat” via hidden ledger manipulation.
#### The exchange as a provable state machine
Pumpkin models the perps exchange as a state machine with a canonical committed state root:
**State includes (conceptual):**
* account collateral balances
* open positions (size, entry, funding index)
* open orders
* market configs and risk parameters
* fee accumulators (protocol, rebates, builder add-ons)
* event log commitments (for audit and replay)
Each batch applies a set of inputs (orders, cancels, oracle samples, funding updates, liquidations) and produces a new state root.
A proof attests:\
\&#xNAN;**“Given previous root and batch inputs, the new root is correct.”**
Only verified proofs are accepted onchain.
{% @mermaid/diagram content="flowchart TB
U\[Signed Orders + Cancels] --> SQ\[Sequencer: batch builder]
O\[Oracle Samples + Funding Inputs] --> SQ
SQ --> EX\[Deterministic Matching + Risk Transition]
EX --> PR\[Prover: generate validity proof]
PR --> VC\[Onchain Verifier]
VC --> SR\[State Root Update]
SR --> EV\[Event Commitments + Receipts]" %}
#### Matching policy: price-time priority
Pumpkin uses price-time priority by default:
* highest priority to best price
* within the same price level, earliest time first
* deterministic partial-fill rules
* deterministic tie-breaking
This matters because the matching rule must be:
1. understandable to traders, and
2. enforceable inside the proof.
#### Risk enforcement as circuit invariants
Risk is enforced as invariants inside the state transition, not as a discretionary system setting. Examples:
* positions cannot transition into invalid margin states except via defined liquidation transitions
* leverage caps and position limits are enforced deterministically
* liquidation eligibility is computed from approved price constructions
#### Price constructions: last, index, and mark
Pumpkin supports multiple price types:
* **Last price:** executed trade price
* **Index price:** external reference aggregation
* **Mark price:** used for liquidation safety
Candle series can be derived from each type to provide transparency and reduce manipulation risk.
#### Liquidation as a deterministic, provable transition
Liquidation events are part of the same proven state machine.
{% @mermaid/diagram content="flowchart LR
M\[Mark Price Update] --> C\[Margin Check]
C -->|Healthy| H\[No Change]
C -->|Below Threshold| L\[Liquidation Transition]
L --> U\[State Update + Event Commitment]" %}
### Trading Terminal Innovations
Pumpkin’s terminal is designed as an execution environment that can keep up with live trading. These features are not “nice-to-haves”; they reduce follow friction, improve comprehension, and increase safety.
#### Multi-chart split (15 layouts)
Users can view multiple charts simultaneously with 15 layouts—critical for correlation monitoring, hedging, and multi-market sessions.
#### Fully modular UI layout
Trading components (chart, order panel, orderbook, positions, fills, alerts) are movable and resizable, allowing both beginners and professionals to build a workflow that matches their execution style.
#### Sound alerts for critical events
Users can configure sound alerts for:
* TP/SL triggers
* funding events
* auto-deleveraging events
* liquidation proximity warnings
#### Position management: merge vs split
Positions can be managed in merged mode or split mode.
#### Trade-on-chart workflows
Pumpkin supports professional workflows:
* click-to-order on the chart
* drag-to-set TP/SL
* chart markers and annotations
* reverse position
#### Themes (six styles)
Pumpkin offers six trading themes to improve long-session comfort.
#### Position direction modes: hedged vs one-way
* **Hedged mode:** hold long and short simultaneously (execution-friendly).
* **One-way mode:** single net position (capital efficient, professional/MM friendly).
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