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4.1 Motivation and Threat Model

In high-volatility, thin-liquidity markets such as memecoins, public order intent creates significant execution risk. Broadcasting order parameters in the clear exposes traders to front-running, sandwich attacks, and adverse price movement driven by opportunistic actors. These risks are exacerbated under leverage, where small price movements can have outsized margin impact. Parallelshots addresses this by supporting private order submission flows, in which pre-trade intent is shielded from the public mempool and only revealed at execution or settlement time. The threat model assumes adversaries capable of mempool monitoring, latency arbitrage, and orderbook inference, but not control over protocol contracts.

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4.2 Private Order Submission Model

Private orders follow a two-phase commit model: 
Phase 1: Commit
commit_hash = H(order_parameters || nonce)

Phase 2: Reveal
reveal(order_parameters, nonce)
During the commit phase, the trader submits a hash of the order parameters. The matching engine is authorized to process committed orders off-chain without broadcasting full intent. Upon execution, the reveal transaction is submitted on-chain to finalize settlement. This ensures:
  • Order parameters are not publicly visible pre-execution
  • Matching remains deterministic
  • Settlement remains transparent and verifiable

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4.3 Engine-Level Confidentiality

Within the matching engine, private orders are treated equivalently to public orders in terms of priority and risk checks. However, they are excluded from public market data feeds until execution. 
if order.visibility == PRIVATE:
    exclude_from_public_orderbook()
This prevents signaling effects and protects large or sensitive positions.

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4.4 Settlement Transparency

Despite private intent, all economic outcomes are public. Once settled:
  • Trade price
  • Quantity
  • Position updates
  • Margin changes
are fully recorded on-chain. Privacy applies strictly to intent, not outcome.

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4.5 Limitations and Guarantees

Private orders do not guarantee price improvement or immunity from volatility. They strictly reduce adversarial extraction vectors. The protocol makes no discretionary decisions regarding execution priority or concealment duration.

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