Table of Contents
Overview
Market Quality Score (MQS) measures the relative quality of liquidity provided by orders in the order book. It is the primary determinant for Liquidity Pools reward allocation and Volume Pool eligibility.
Price levels are discounted in function of distance to the Mid Price ("Price Distance Discounting"), and are used to calculate price scores ("PS"). These scores are multipled with order size ("Q") to get a Top of Book Equivalent ("TOBE") score. MQS is calculated by dividing the TOBE of an order by the sum total TOBE of all orders in that order book.
i.e. MQS is the share of rewards received for the order book snapshot.
Price Distance Discounting
Price scores use Normalized Distance ("ND") as the input to a non-linear discounting function.
For example, the price scoring is 0.5ND for perpetuals and 0.1ND for options. ND is calculated as
where Price Distance is the absolute difference between the Mid Price (Pmid= Pbest bid + Pbest ask / 2) and the order price (Porder).
Target Distance varies by product group and instrument, and is expressed as basis points (bps) of the index price.
The below graph visualizes this discounting

Top of Book Equivalent (TOBE)
The TOBE score of an order measures its size-adjusted contribution considering its price distance
The aggregate TOBE of an order book, TOBEsum, is used to determine the snapshot reward scaling MSR% relative to TOBEmin and TOBEmax targets.
Market Quality Score (MQS)
The MQS for each order is its TOBE score relative to the sum of TOBE scores in the order book for the instrument
A participant's MQS for an order book snapshot is the sum of the MQS of all their orders
This MQSparticipant score determines the participant's share of the snapshot reward SRorder_book for Liquidity Pools.
Example
Let's assume for BTC - Perpetual that the index price is $60,000. The Target Distance is 1 bps * $60,000 = $6. Using the 0.5ND discounting, the MQS is calculated as follows:
Ask | Price (USD) | Size (BTC) | PD (USD) | ND (bps) | PS (Score) | TOBE (Score) | MQS (%) |
---|---|---|---|---|---|---|---|
E | $60,038 | 30 | 34.0 | 5.67 | 0.02 | 0.5 | 14.6% |
D | $60,028 | 2.5 | 24.0 | 4.00 | 0.06 | 0.16 | 4.6% |
C | $60,019 | 8 | 15.0 | 2.50 | 0.18 | 0.5 | 14.6% |
B | $60,014 | 1 | 10.0 | 1.67 | 0.31 | 0.31 | 9.2% |
A | $60,008 | 0.5 | 4.0 | 0.67 | 0.63 | 0.31 | 9.2% |
Mid Price | $60,004 | TOBEbid | 1.63 | TOBEask | 1.79 | TOBEsum | 3.42 |
Bid | Price (USD) | Size (BTC) | PD (USD) | ND (bps) | PS (Score) | TOBE (Score) | MQS (%) |
---|---|---|---|---|---|---|---|
A | $60,000 | 0.8 | 4.0 | 0.67 | 0.63 | 0.5 | 14.6% |
B | $59,994 | 0.5 | 10.0 | 1.67 | 0.31 | 0.16 | 4.6% |
C | $59,988 | 3 | 16.0 | 2.67 | 0.16 | 0.47 | 13.8% |
D | $59,982 | 25 | 22.0 | 3.67 | 0.08 | 0.5 | 14.6% |
TOBE scores may be capped for certain instruments. Example uses illustrative non-capped values.
Liquidity Pools Rewards
Liquidity Pools rewards are allocated based on a participant's share of the total MQS within each pool and instrument calculated across ~8,000 daily snapshots.
A total of up to $250,000 USDt is allocated monthly across the following Liquidity Pools:
Product Group | Monthly Pool | BTC Share (50%) | ETH Share (50%) |
---|---|---|---|
Perpetual | $85,000 | $42,500 | $42,500 |
Options - Tier A* | $60,000 | $30,000 | $30,000 |
Options - Tier B* | $25,000 | $12,500 | $12,500 |
Rolls | $80,000 | $40,000 | $40,000 |
Total | $250,000 | $125,000 | $125,000 |
*Eligible Options Tiers: See Terms & Conditions
Reward Scaling
The total reward available for each individual snapshot SRorder_book depends on the overall liquidity quality (TOBEsum) of that snapshot relative to the defined minimum (TOBEmin) and maximum (TOBEmax) thresholds for the instrument.
Maximum Reward
The MSRmax represents the maximum possible reward for a single snapshot for a specific instrument, derived from the monthly pool allocation
Minimum Liquidity Check
No reward is paid for the snapshot if the liquidity on either the bid or ask side is below half the minimum threshold
Linear Reward Scaling
If the minimum check is passed, the snapshot reward (SRorder_book) scales linearly from 0% to 100% of the Maximum Snapshot Reward (MSRmax) as the total TOBEsum increases from TOBEmin up to TOBEmax
A participant's raw reward entitlement per snapshot is MQSparticipant × SRorder_book. The daily sum of these entitlements forms the basis for the reward, subject to the potential Volume Share Adjustment.
Volume Pool Rewards
Volume Pool rewards are allocated based on a participant's share of the trading fees compared to all trading fees collected by eligible participants in a day.
A total of up to $250,000 USDt is allocated monthly depending on total exchange volume.
Volume Pool Size Scaling
The daily size of the Volume Pool, Pdaily, scales linearly based on the total daily exchange volume, Vdaily, across all products relative to minimum (Vmin = $25,000,000) and maximum (Vmax = $100,000,000) volume thresholds
The Maximum Daily Volume Pool size, Pmax_daily, is possible if the daily equivalent of the $250,000 monthly maximum is larger than the maximum volume threshold. In other words, Pmax_daily if Vdaily > Vmax
See Terms & Conditions for the eligibility criteria and distribution rules.
Volume Pool Summary
- Eligibility Check (Daily): Participant must have an MQP score ≥ 2.5% in any single Liquidity Pool (Perpetual, Options - Tier A, Options - Tier B, Rolls).
- Daily Reward Pool Size Calculation: Determined by total exchange volume ($25,000,000 -$100,000,000 range).
- Fee Share Calculation: Participant Fee Share = (Participant Maker + Taker Fees) / (Total Maker + Taker Fees of all eligible participants).
- Reward Calculation: Participant Daily Volume Reward = Participant Fee Share x Daily Reward Pool Size.