Understanding Thalex's Market Velocity Program (MVP): A Dynamic Fee Rebate System

How Does the Program Work?

The MVP operates across four distinct product groups:

• BTC D1 (Perpetuals & Futures)
• ETH D1 (Perpetuals & Futures)
• BTC Options
• ETH Options

Each product group has its own daily reward pool of 2,050 USDt, which is distributed when the product group reaches a minimum daily exchange volume of $5 million.

Each day's periods progress towards the volume goal per product group is visible here

Interactive Simulation Tool

To help traders understand and plan for their potential rewards, we've developed an interactive calculator.

This tool allows users to calculate different exchange volume scenarios and instantly see their impact on effective trading fee rates.

Different Customer Groups and Volume Impact

Let's look at a practical example from our simulator:

In this scenario, we can see how different customer groups contribute to the overall trading volume and how their base fees translate into their total trading fees. For instance:

• MM-D1 traders with 8M taker and maker volumes generate $640 in total fees
• MM-Options traders showing 4M taker maker volumes contribute $480 in total fees
• Protail traders with their 2.5M taker and maker volumes add $500 to the fee pool

Reward Distribution Mechanics

The program automatically calculates reward distributions based on the trading fee share:

Looking at our simulation:

• Total trading volume of 30M (15M taker / 15M maker)
• Generated total fees of $1870
• Distributed rewards of $1095 for taker and $775 for maker fees
• Overall fee shares split between 59% taker and 41% maker

Effective Fee Rates

One of the most valuable insights from our simulator is the calculation of effective trading fee rates after rewards:

The calculator shows how each group's effective rates are reduced through the reward system. For example:

• MM-D1 achieves net rates of -0.06 bps (taker) and -0.02 bps (maker)
• Protail achieves net rates of -0.10 bps for both taker and maker

Scenario Planning and Analysis

The simulator includes pre-defined scenarios in a dropdown to help traders understand how a different volume mix affect their rewards:

Users can:

1. Toggle between different product groups to simulate reward distributions for each reward pool
2. Select pre-defined scenarios that model various volume mixes (info tooltip):

• Base scenario: Default as inserted by the user
• Retail growth: Shifts 10% of MM volumes to Protail, and 20% of MM volumes to retail group
• Volume growth: Increases all volumes by 40%

Practical Applications

Traders can use this tool to:

• Plan their trading strategies across different product groups
• Understand how their trading volume affect their effective trading costs
• Optimize their maker/taker ratio for maximum rewards
• Project potential rewards and effective fee rates based on expected trading volumes

So, What Now?

Visit https://thalex.com/mvp-calculator to:

• Simulate your expected trading volumes across different product groups
• Calculate your effective fee rates
• Test your numbers in different volume mix scenarios
• Plan your participation across BTC and ETH products and reward pools by simulating your volumes as “You"