Solayer USD $LAYER

$LAYER — off-hours, the equity mark loses its smoothing exactly when the book is thinnest

I read Price Feeds, Off-Hours Trading, Liquidations and Margin.

During open hours the mark is the median of three methods, one of which applies a 300-second EMA, so a short burst of trades barely moves it. While an equity's underlying market is closed, that construction is dropped: the oracle freezes and the mark simply tracks the venue's last trade, clamped to ±5% of the frozen oracle.

Two things line up there. The band half-width is defined as 1/(2 × max leverage) — the same formula as the maintenance margin rate. For equities both are 5%. So the widest move the band permits off-hours is exactly the move that takes a 10× position from its 10% initial margin to its 5% maintenance threshold. And liquidations run 24/7 on the mark.

So in the thinnest session, the smoothing is gone, the external reference is frozen, and the permitted range is exactly one max-leverage liquidation.

My question: off-hours, is there a minimum size or time-weighting before a trade moves the mark, or can a single small fill set it? The docs specify the ±5% clamp but nothing beneath it.

One suggestion: keep a reduced-weight EMA off-hours, or require the mark to hold a level for N seconds before margin checks use it.