Market Quality Program

Anyone adding liquidity is participating. Up to $250K monthly rewards

Introduction

The MQP rewards anyone who makes a meaningful contribution to market quality of the Platform in Admitted Contracts relevant to the MQP. The objective of the MQP is to incentivize visible liquidity on the Platform. Participation in the program is fully open.

Rewards

The Reward Pool is set at up to $250K / month, segmented as follows by product:

SegmentsBTCETH
PerpetualUp to $37,500Up to $37,500
FuturesUp to $12,500Up to $12,500
Futures RollsUp to $12,500Up to $12,500
Options - Tier A*Up to $44,000Up to $44,000
Options - Tier B*Up to $18,500Up to $18,500

*Tier A: weeklies, monthlies and quarterlies with a delta between 25 and first ITM (inclusive)
*Tier B: any option not in Tier A and a delta between 5 and 95 (inclusive)

Aggregation is as follows:

  • Each month has ~260K snapshots. Each snapshot has an equal weight of the Reward Pool
  • Per snapshot, for each eligible instrument, market quality is scored per orderbook. Bids and asks are equally weighted
  • All product groups have N different eligible instruments at any given time. The rewards per instrument are 1/N of the product group

The total reward paid per orderbook snapshot is a function of the level of liquidity:

  • Below a minimum threshold of market quality, the orderbook snapshot is not rewarded, i.e. no participant receives a score regardless of having a limit order in the book
  • Above the threshold, the total reward scales proportionately to the total level of market quality
  • If an orderbook snapshot meets the target level of market quality or surpasses it, the reward is equal to $250K / Nsnapshots x Allocationinstrument

Market Quality Scoring:

  • Price levels are discounted in function of distance to the Mid Price (“Distance Discounting”). Price scores then get multiplied with order size to yield a metric called Top of Book Equivalent Score (“TOBE” in short).
  • Dividing the TOBE of an order by the sum total TOBE of all orders in an order book gives a % score called Market Quality Score (“MQS” in short).
  • A participant’s share of the orderbook snapshot reward is the MQS of ones orders.
  • The TOBE of an orderbook is a proxy for the quality of visible liquidity of a snapshot and is compared to target values to determine the snapshot reward.
  • Daily email reports on a participant’s performance will be available on an opt-in basis.
More info here

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Thalex reserves the right to assess each applicant's eligibility for the Market Quality Program. Please refer to this link for more information.