fix: resolve SL/TP order placement and orphaned cleanup issues

- Fixed Drift SDK initialization in place-order endpoint (NodeWallet vs Wallet)
- Added 2% minimum trigger distance validation in execute-drift endpoint
- Corrected orphaned order cleanup logic to cancel ALL orders when no position
- Resolved issue where SL/TP orders were immediately canceled due to insufficient distance
- Tested complete cycle: position entry → protective orders → orphaned cleanup

Orders now maintain proper 2% distance from market price and stay active.
Cleanup system correctly identifies and removes orphaned orders when positions close.

app/api/drift/cleanup-orders/route.js

@@ -99,13 +99,9 @@ export async function POST() {
           // Check if this order is for a market where we have no position
           const hasPosition = positionMarkets.has(order.marketIndex)
           
-          // CRITICAL FIX: Only cancel reduce-only orders if there's NO position
+          // CORRECTED LOGIC: Cancel ALL orders when no position exists
-          // Stop Loss and Take Profit orders are reduce-only but should EXIST when we have a position
+          // If we have no position, then ALL orders (including SL/TP) are orphaned
-          const isReduceOnly = order.reduceOnly
+          return !hasPosition
-          
-          // Only cancel orders that are truly orphaned (no position for that market)
-          // Do NOT cancel reduce-only orders when we have a position (these are SL/TP!)
-          return !hasPosition && !isReduceOnly
         })
 
         // Additionally, find lingering SL/TP orders when position has changed significantly

app/api/drift/place-order/route.js

@@ -24,7 +24,7 @@ export async function POST(request) {
     });
     
     // Import Drift SDK
-    const { DriftClient, initialize, MarketType, PositionDirection, OrderType, OrderTriggerCondition, Wallet, BN } = await import('@drift-labs/sdk');
+    const { DriftClient, initialize, MarketType, PositionDirection, OrderType, OrderTriggerCondition, BN } = await import('@drift-labs/sdk');
     const { Connection, Keypair } = await import('@solana/web3.js');
     
     // Setup connection and wallet
@@ -40,7 +40,10 @@ export async function POST(request) {
     
     const privateKeyArray = JSON.parse(process.env.SOLANA_PRIVATE_KEY);
     const keypair = Keypair.fromSecretKey(new Uint8Array(privateKeyArray));
-    const wallet = new Wallet(keypair);
+    
+    // Use the correct Wallet class like in cleanup endpoint
+    const { default: NodeWallet } = await import('@coral-xyz/anchor/dist/cjs/nodewallet.js');
+    const wallet = new NodeWallet(keypair);
     
     // Initialize Drift client
     const env = 'mainnet-beta';
@@ -49,12 +52,9 @@ export async function POST(request) {
       connection,
       wallet,
       programID: sdkConfig.DRIFT_PROGRAM_ID,
-      accountSubscription: {
+      opts: {
-        type: 'polling',
+        commitment: 'confirmed',
-        accountLoader: {
+      },
-          commitment: 'confirmed'
-        }
-      }
     });
     
     await driftClient.subscribe();

app/api/trading/execute-drift/route.js

@@ -216,11 +216,28 @@ export async function POST(request) {
       
       console.log('✅ Drift order placed:', txSig)
 
+      // Validate trigger distances before placing SL/TP orders
+      const MIN_TRIGGER_DISTANCE_PERCENT = 2.0; // Minimum 2% distance from current price
+      
       // Set up stop loss and take profit if specified
       let stopLossOrderId = null
       let takeProfitOrderId = null
 
       if (stopLoss) {
+        // Validate stop loss distance
+        const slDistance = Math.abs(stopLoss - currentPrice) / currentPrice * 100;
+        
+        if (slDistance < MIN_TRIGGER_DISTANCE_PERCENT) {
+          console.warn(`⚠️ Stop loss too close: ${slDistance.toFixed(2)}% < ${MIN_TRIGGER_DISTANCE_PERCENT}% minimum`);
+          // Adjust stop loss to minimum distance
+          if (direction === PositionDirection.LONG) {
+            stopLoss = currentPrice * (1 - MIN_TRIGGER_DISTANCE_PERCENT / 100);
+          } else {
+            stopLoss = currentPrice * (1 + MIN_TRIGGER_DISTANCE_PERCENT / 100);
+          }
+          console.log(`🔧 Adjusted stop loss to: $${stopLoss.toFixed(4)} (${MIN_TRIGGER_DISTANCE_PERCENT}% distance)`);
+        }
+        
         try {
           const stopLossParams = {
             orderType: OrderType.TRIGGER_LIMIT,
@@ -243,6 +260,20 @@ export async function POST(request) {
       }
 
       if (takeProfit) {
+        // Validate take profit distance
+        const tpDistance = Math.abs(takeProfit - currentPrice) / currentPrice * 100;
+        
+        if (tpDistance < MIN_TRIGGER_DISTANCE_PERCENT) {
+          console.warn(`⚠️ Take profit too close: ${tpDistance.toFixed(2)}% < ${MIN_TRIGGER_DISTANCE_PERCENT}% minimum`);
+          // Adjust take profit to minimum distance
+          if (direction === PositionDirection.LONG) {
+            takeProfit = currentPrice * (1 + MIN_TRIGGER_DISTANCE_PERCENT / 100);
+          } else {
+            takeProfit = currentPrice * (1 - MIN_TRIGGER_DISTANCE_PERCENT / 100);
+          }
+          console.log(`🔧 Adjusted take profit to: $${takeProfit.toFixed(4)} (${MIN_TRIGGER_DISTANCE_PERCENT}% distance)`);
+        }
+        
         try {
           const takeProfitParams = {
             orderType: OrderType.TRIGGER_LIMIT,