Market Makers Program

We provide a level playing field for all traders on X10, and in addition to offering transparent maker rebates, we are introducing a makers' rewards program as described below.

Description of the Program

Every weekly epoch, the following reward pools will be distributed among eligible makers: the Xpoints Rewards Pool and the USDC Rewards Pool. The sizes of both pools will vary on a weekly basis.

When rewards are distributed, eligible makers will need to choose the proportion of rewards they wish to claim in USDC versus Xpoints. Any unclaimed Xpoints will be burnt.

To qualify for rewards in a given market, a market maker's volume must exceed 0.5% of the total makers' volume in that market for the epoch.

Mechanics of Rewards Allocation

Total Reward for a given Market Maker in the weekly epoch is determined using 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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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 = 28 days * 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 marker are as in the table below.

Market	Reward allocation %	Minimum depth	Maximum spread
BTC, ETH	10% per market if >10 listed markets 20% per market if ≤10 listed markets	$2,000	20 bps
Other markets	(1 - ETH and BTC allocation %)/ (№ of listed assets - 2)	$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. Until then, we will share weekly reports with participating market makers, detailing their and others' Q scores and rewards allocation across markets.

• The sizes of the rewards pool will be revealed on the second day of the epoch. Until then, the sizes will only be disclosed retroactively at the end of the weekly epoch.

The Market Makers Program will launch on Tuesday, August 6th, with the first epoch running from Tuesday, August 6th at 00:00 UTC until Tuesday, August 13th at 00:00 UTC. Subsequent weekly epochs will run continuously until further notice.

Initially, only USDC rewards will be distributed, and the timeline for the launch of the Xpoints rewards pool will be communicated separately.

X10 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 6000 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.