Makers

We provide a level playing field for all traders on Extended, and in addition to offering transparent maker rebates, we are introducing a makers' rewards program as described below.

Description of the Program

We will be sharing more details about the upcoming takers and makers rewards program soon. In the meantime, you can already review the logic behind the future rewards allocation for makers and apply to participate in the makers program.

Mechanics of Rewards Allocation

Total reward for a given Market Maker during the period is determined by the following formula:

$$\text{Total reward} = \sum \text{of rewards across markets}$$

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The reward for a Market Maker in a given market is determined using the following formula:

$$\text{Reward for a given market} = \text{Market Reward Pool} \times \left( \frac{\text{Maker’s Q score for a market}}{\sum \text{of Q scores of all eligible makers for a market}} \right)$$

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The Market Reward Pool is determined using the following formula:

$$\text{Market Reward Pool} = \text{Total Makers Reward Pool} \times \text{Reward Allocation \%}$$

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Reward Allocation % per market is determined using the following formula:

\text{Reward Allocation %} = max(min(0.01,\frac {1} {\text{Number of Markets}}), \frac {\text{Market Volume in the Period}} {\text{Total Volume in the Period}})

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The Market Maker's Quality Score for a market is determined using the following formula:

$$Q score = \left(\sum_{n} \left(Q_{\min(n)} = \min \left( \sum_{i} \frac{BidDepth_i}{BidSpread_i}, \sum_{j} \frac{AskDepth_j}{AskSpread_j} \right) \right) \right)^{0.3} \times \left( \sum_{n} \text{Count}(Q_{\min(n)} > 0) \right)^{5} \times \text{Maker Volume}^{0.7}$$

where:

1. n = number of days in the period * 24 hours * 60 minutes. Liquidity provider performance is monitored and calculated on a minute-by-minute basis (using randomised sampling).

2. Orders below a certain Minimum depth and over a certain maximum spread (mid-market spread) per market are excluded.

3. Minimum depth and maximum spread per market are as in the table below.

Market	Minimum depth	Maximum spread
BTC, ETH	$2,000	20 bps
Other markets	$400	40 bps

Other Considerations

Once the UI and API endpoint for the Market Maker Program are launched users will be able to view their own and other users’ Q scores and current rewards allocation in real-time, with data updated every hour.

Extended reserves the right to amend the terms of the rewards program.

Application to the Program

The program is designed to provide a level playing field for all participants and is open to all users without specific requirements. However, to avoid calculating the Quality score for every user on the exchange every minute, we ask interested users to provide the following:

• IP addresses from which they will be trading, allowing us to increase their rate limits to 6,000 requests per minute.

• L1 wallets they will be using for trading, so we can begin calculating the Quality score for these wallets.

• Any reasonable proof of activity on other exchanges.

If you're interested in enrolling in the program, please contact us at [e-mail] or send us a message on Discord.