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Overview

Before placing orders, you must deposit tokens into vaults—ERC4626 vaults that hold your collateral for trading. Each tradeable token has its own vault:
  • USDC → USDC vault
  • MirrorToken → MirrorToken vault
Your tokens stay in these vaults while you trade. When you place orders, the required collateral is locked; when you cancel or claim, it’s unlocked.

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Approval requirements

To trade, you need approvals on both tokens and vaults:

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For deposits

Approve the Controller on each token: 
USDC.approve(CONTROLLER, amount);
mirrorToken.approve(CONTROLLER, amount);
This allows the Controller to transfer tokens from your wallet into vaults.

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For trading

Approve the BookManager on each vault: 
vaultUSDC.approve(BOOK_MANAGER, type(uint256).max);
vaultMirrorToken.approve(BOOK_MANAGER, type(uint256).max);
This allows the BookManager to lock/unlock your collateral and settle trades.

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Required approvals checklist

Before trading a pair (e.g., USDC/MirrorToken), set up these approvals:

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1. For USDC (quote currency)

  • ✅ Approve Controller on USDC token (for deposits)
  • ✅ Approve BookManager on USDC vault (for withdrawals and settlements)

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2. For MirrorToken (base currency)

  • ✅ Approve Controller on MirrorToken (for deposits)
  • ✅ Approve BookManager on MirrorToken vault (for withdrawals and settlements)

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3. Deposit funds

  • ✅ Deposit USDC into its vault via Controller.depositToVault(USDC, amount)
  • ✅ Deposit MirrorToken into its vault via Controller.depositToVault(MirrorToken, amount)
Once these steps are complete, you can:
  • Place limit orders (make)
  • Execute market orders (take)
  • Cancel orders
  • Claim proceeds

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Vault balances

Check your balances:
  • maxWithdraw(user): available to withdraw (excludes locked collateral)
  • lockedBalances(user): amount locked in open orders
Important: You cannot withdraw locked collateral—cancel your orders first.

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Basic operations

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Deposit

Controller.depositToVault(currency, amount);

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Withdraw

Controller.withdrawFromVault(currency, amount);

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Check balance

uint256 available = vault.maxWithdraw(user);    // Available to withdraw
uint256 locked = vault.lockedBalances(user);    // Locked in orders

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Example: full setup flow

// 1. Approve tokens for deposits
USDC.approve(CONTROLLER, 1000e6);           // 1000 USDC
mirrorToken.approve(CONTROLLER, 100e18);    // 100 tokens

// 2. Deposit into vaults
Controller.depositToVault(Currency.wrap(address(USDC)), 1000e6);
Controller.depositToVault(Currency.wrap(address(mirrorToken)), 100e18);

// 3. Approve vaults for trading
vaultUSDC.approve(BOOK_MANAGER, type(uint256).max);
vaultMirrorToken.approve(BOOK_MANAGER, type(uint256).max);

// Now ready to trade!

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Security

  • Approvals are persistent—set once and forget
  • Your tokens never leave the vaults during trading
  • Locked collateral cannot be withdrawn, even with approvals

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See also