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FairFlow

Block space becomes most valuable when markets are moving quickly. If new orders consume all available capacity, traders may be unable to cancel exposure while the network struggles to process the price updates and liquidations needed to protect solvency.

FairFlow is the ordering policy that prevents this competition from being left to chance.

FairFlow separates transactions into safety and oracle updates, liquidations, cancellations, reduce-only orders, ordinary orders, and standard network actions.

Each class receives a defined block-space budget. New orders can use their available capacity without consuming the complete path reserved for actions that update risk or reduce it.

This is an inclusion policy, not a promise that every cancellation reaches the next block. The transaction must still arrive in time, fit within the class budget, and pass authorization and state checks.

A transaction containing several actions receives the lowest priority among them. Combining a cancellation with an ordinary order therefore leaves the complete transaction in the ordinary class.

This prevents a trader from attaching a risk-increasing action to a safety action merely to reach protected capacity.

FairFlow preserves the transaction-selection order inside each class. It does not assume that every validator first observed the transaction at the same moment.

Once an order reaches its market, the order book applies price-time priority. FairFlow decides how transactions compete for a block; the order book decides how accepted orders compete for liquidity.

The proposer classifies transactions and constructs the block within class, count, byte, and total-work limits. Every validator repeats the classification and verifies that the proposal follows the same policy.

A proposal with manipulated class ordering, excessive usage, an unsupported protocol version, or an invalid financial transition is rejected.

The class definitions and budgets are versioned network parameters. Changing their meaning requires a protocol upgrade so every validator applies the same ordering rules at the same height.