Token Bucket Algorithm

The Token Bucket Algorithm is a method used to control the rate of data or request transmission, commonly used to enforce API rate limits. Tokens are added to a bucket at a fixed rate, and each request consumes a token; if the bucket is empty, the request is throttled or rejected.

This allows for a certain degree of burstiness in traffic while maintaining an average rate limit over time. It is a highly efficient way for exchanges to manage server load and for traders to manage their own request flows.

By understanding how the exchange implements this, traders can optimize their strategies to make the most of their allotted capacity.