How an AI Agent Can Cancel and Replace an Order Safely

An AI trading agent should first confirm that the order it intends to cancel is still open, then issue a signed cancellation request, and finally submit a new order that respects the same risk limits. This sequence reduces the chance of orphaned positions and ensures that each step can be audited.

Why verify the order status before cancelling?

Market data feeds can be delayed or contain errors. By checking the latest authoritative status from the normalized market interface, the agent avoids sending a cancellation for an already filled or expired order, which could create duplicate exposure.

What are the key steps in a safe cancel‑and‑replace workflow?

1. 01The agent reads the current order state from the runtime status endpoint.
2. 02The agent confirms that the order is still active and that cancellation is permitted by owner‑signed limits.
3. 03The agent creates a signed cancellation intent using its scoped key and submits it.
4. 04The agent waits for an explicit success acknowledgement; any error code is logged.
5. 05The agent constructs a new order that complies with the same owner policies and signs it with the scoped key.
6. 06The agent submits the new order and records the response, including timestamps and any warnings.

How should errors and timeouts be handled?

A timeout does not prove failure. The agent must query the order status after a timeout to determine whether the cancellation succeeded, whether the original order was filled, or whether a partial fill occurred. This reconciliation step is essential for durable mutation identity.

• ·Log the timeout event with the exact timestamp and source of market data.
• ·Re‑query the order status to confirm its final state.
• ·If the order remains open, retry cancellation respecting the owner’s retry limits.
• ·If the order was partially filled, decide whether to replace the remaining quantity or adjust the strategy.

When should an AI agent pause after repeated errors?

Repeated failures to cancel or replace orders indicate a systemic issue such as network instability or mis‑configured limits. The agent should trigger an emergency stop that revokes its key and notifies the owner, rather than continuing unchecked.

An emergency stop protects capital by halting further activity, but it does not automatically close existing positions; those require separate owner review.

How does the agent ensure compliance with owner‑defined limits?

Owner‑signed policy objects can include maximum order size, daily notional caps, loss limits, and expiry timestamps. The agent must validate the replacement order against each of these fields before signing and submitting.

• ·Check that the new order size does not exceed the maximum allowed.
• ·Verify that the cumulative daily notional, including the replacement, stays within the owner’s cap.
• ·Ensure the order expiry does not surpass the policy expiry.
• ·Confirm that the order does not breach daily loss limits based on current P&L.

What additional resources help secure the cancel‑and‑replace process?

• ·Read about verifying market data before placing an order in Felix documentation.
• ·Learn how to set a maximum order size for your AI agent in Felix documentation.
• ·Review guidelines for emergency stops and key revocation in Felix documentation.