Market Makers
Fee Structure Market maker fee structure, rebates, negative maker fees, and volume-based incentives on LX
LX offers one of the most competitive fee structures in the industry for market makers, including negative maker fees, volume-based rebates, and tiered incentive programs.
┌─────────────────────────────────────────────────────────────────────┐ │ FEE STRUCTURE SUMMARY │ ├─────────────────────────────────────────────────────────────────────┤ │ │ │ Tier │ Maker Fee │ Taker Fee │ Monthly Rebate Cap │ │ ──────────┼─────────────┼────────────┼─────────────────────────────│ │ Tier 1 │ 0.00% │ 0.03% │ $10,000 │ │ Tier 2 │ -0.005% │ 0.025% │ $50,000 │ │ Tier 3 │ -0.010% │ 0.020% │ $200,000 │ │ Tier 4 │ -0.020% │ 0.015% │ $500,000 │ │ │ │ Note: Negative maker fees mean YOU GET PAID to provide liquidity │ │ │ └─────────────────────────────────────────────────────────────────────┘ Tier Monthly Volume Maker Fee Effective Rate Tier 1 $10M - $100M 0.00% Zero cost Tier 2 $100M - $1B -0.005% Earn $50/million Tier 3 $1B - $10B -0.010% Earn $100/million Tier 4 $10B+ -0.020% Earn $200/million
def calculate_maker_rebate (tier: int , trade_value: float ) -> float : """Calculate maker rebate for a trade.""" rebate_rates = { 1 : 0.0000 , # 0.00% 2 : 0.00005 , # 0.005% 3 : 0.00010 , # 0.010% 4 : 0.00020 , # 0.020% } rate = rebate_rates[tier] rebate = trade_value * rate return rebate # Example: Tier 3 maker, $1M trade rebate = calculate_maker_rebate( 3 , 1_000_000 ) # Result: $100 rebate Tier Monthly Maker Volume Maker Rebate Tier 2 $500,000,000 $25,000 Tier 3 $2,000,000,000 $200,000 (capped) Tier 4 $15,000,000,000 $500,000 (capped)
Tier Taker Fee vs. Standard Retail Retail 0.05% Baseline Tier 1 0.03% 40% discount Tier 2 0.025% 50% discount Tier 3 0.020% 60% discount Tier 4 0.015% 70% discount
Market Type Tier 1 Tier 2 Tier 3 Tier 4 BTC/ETH Major Pairs 0.025% 0.020% 0.015% 0.010% Stablecoin Pairs 0.010% 0.008% 0.005% 0.003% Altcoin Pairs 0.035% 0.030% 0.025% 0.020% New Listings 0.040% 0.035% 0.030% 0.025%
┌─────────────────────────────────────────────────────────────────────┐ │ VOLUME REBATE TIERS │ ├─────────────────────────────────────────────────────────────────────┤ │ │ │ Monthly Maker Volume │ Additional Rebate │ Max Monthly Bonus │ │ ────────────────────────┼───────────────────┼───────────────────── │ │ $10M - $100M │ +0.0 bps │ $0 │ │ $100M - $500M │ +0.5 bps │ $25,000 │ │ $500M - $1B │ +1.0 bps │ $50,000 │ │ $1B - $5B │ +1.5 bps │ $150,000 │ │ $5B - $10B │ +2.0 bps │ $300,000 │ │ $10B+ │ +2.5 bps │ $500,000 │ │ │ │ Rebates paid monthly in LUX or USDC (market maker choice) │ │ │ └─────────────────────────────────────────────────────────────────────┘ def calculate_monthly_rebate (maker_volume: float , tier: int ) -> dict : """Calculate total monthly rebate including volume bonus.""" # Base rebate from tier base_rates = { 1 : 0 , 2 : 0.00005 , 3 : 0.00010 , 4 : 0.00020 } base_rebate = maker_volume * base_rates[tier] # Volume bonus tiers if maker_volume >= 10_000_000_000 : # $10B+ bonus_rate = 0.00025 # 2.5 bps elif maker_volume >= 5_000_000_000 : # $5B+ bonus_rate = 0.00020 # 2.0 bps elif maker_volume >= 1_000_000_000 : # $1B+ bonus_rate = 0.00015 # 1.5 bps elif maker_volume >= 500_000_000 : # $500M+ bonus_rate = 0.00010 # 1.0 bps elif maker_volume >= 100_000_000 : # $100M+ bonus_rate = 0.00005 # 0.5 bps else : bonus_rate = 0 volume_bonus = maker_volume * bonus_rate # Apply caps tier_caps = { 1 : 10_000 , 2 : 50_000 , 3 : 200_000 , 4 : 500_000 } volume_caps = [ 0 , 25_000 , 50_000 , 150_000 , 300_000 , 500_000 ] base_rebate = min (base_rebate, tier_caps[tier]) # Volume bonus cap based on volume tier total_rebate = base_rebate + volume_bonus return { "base_rebate" : base_rebate, "volume_bonus" : volume_bonus, "total_rebate" : total_rebate } # Example: Tier 3 MM with $3B monthly maker volume result = calculate_monthly_rebate( 3_000_000_000 , 3 ) # base_rebate: $200,000 (capped) # volume_bonus: $450,000 (3B * 1.5 bps) # total_rebate: $650,000 For MMs providing liquidity in newly listed markets:
Program Duration Benefit Launch Bonus First 30 days +50% maker rebate Depth Bonus First 30 days +$0.50/$1K depth/hour Spread Bonus First 30 days +$1K/day for <3 bps spread
Monthly Liquidity Mining Allocation: 1,000,000 LUX Distribution Formula: - 50% - Share of maker volume - 30% - Time-weighted average depth - 20% - Spread quality score Example Calculation (Tier 3 MM): - Maker volume share: 15% → 75,000 LUX - Depth score share: 12% → 36,000 LUX - Spread quality share: 18% → 36,000 LUX - Total: 147,000 LUX (~$735,000 at $5/LUX) Tier 4 market makers may negotiate custom fee arrangements:
Arrangement Type Typical Terms Volume Commitment Higher rebates for volume guarantees Exclusivity Enhanced terms for exclusive pairs Cross-Venue Fee credits for external hedge costs Revenue Share % of spread captured
Exchange Maker Fee Taker Fee MM Rebate LX (Tier 3) -0.010% 0.020% $200K/mo Binance VIP 9 -0.005% 0.015% None Coinbase Adv. MM 0.00% 0.04% None Kraken Pro 0.00% 0.016% None FTX MM (was) -0.002% 0.02% Limited
DEX Maker Fee Taker Fee MEV Protection LX -0.020% 0.015% Full Uniswap v3 0.05-1% 0.05-1% Partial dYdX -0.025% 0.05% Yes GMX N/A (AMM) 0.1% Partial Hyperliquid -0.02% 0.05% Yes
Scenario: $2B monthly maker volume, $500M monthly taker volume Competitor CEX (Best tier): - Maker: $2B × 0.00% = $0 - Taker: $500M × 0.015% = $75,000 - Monthly cost: $75,000 LX (Tier 3): - Maker: $2B × -0.010% = -$200,000 (rebate) - Taker: $500M × 0.020% = $100,000 - Volume bonus: $2B × 0.015% = $300,000 - Monthly net: -$400,000 (earn $400K) Annual difference: $5.7M in LX's favor Frequency Type Timing Real-time Trade fees Deducted per trade Daily Rebate accrual 00:00 UTC Monthly Rebate payout 5th business day Monthly Volume bonus 5th business day
Option Currency Timing Bonus USDC Stablecoin Monthly 0% LUX Native token Monthly +10% Auto-compound LUX staked Monthly +15%
Monthly statements include:
┌─────────────────────────────────────────────────────────────────────┐ │ MONTHLY FEE STATEMENT - December 2024 │ │ Market Maker: MM_FIRM_001 │ │ Tier: 3 (Professional) │ ├─────────────────────────────────────────────────────────────────────┤ │ │ │ Volume Summary │ │ ───────────────────────────────────────────────────────────────── │ │ Total Maker Volume: $2,145,678,900 │ │ Total Taker Volume: $523,456,780 │ │ Number of Trades: 1,234,567 │ │ │ │ Fee Details │ │ ───────────────────────────────────────────────────────────────── │ │ Taker Fees Paid: $104,691.36 │ │ Maker Rebates Earned: ($200,000.00) ← capped │ │ Volume Bonus Earned: ($321,851.84) │ │ Liquidity Mining: 147,000 LUX │ │ ───────────────────────────────────────────────────────────────── │ │ Net Fees: ($417,160.48) ← YOU EARNED │ │ │ │ Payout Details │ │ ───────────────────────────────────────────────────────────────── │ │ USDC Payout: $417,160.48 │ │ LUX Payout: 147,000 LUX │ │ Payout Date: January 7, 2025 │ │ │ └─────────────────────────────────────────────────────────────────────┘
30 days advance notice for fee increases
Fee reductions effective immediately
Volume tier changes apply monthly
Issue Resolution Time Process Fee calculation error 24 hours Auto-detected, credited Rebate discrepancy 48 hours Submit ticket Volume attribution 5 business days Review with evidence
Market makers may request:
Daily fee transaction logs
Monthly volume reports
Real-time fee dashboard access
Third-party audit support
Document Frequency Format Trade history On-demand CSV, JSON Fee statements Monthly PDF 1099 (US) Annual PDF Cost basis report On-demand CSV
Typical Tax Treatment (consult your tax advisor): Maker Rebates: - Generally treated as reduction in cost basis - Some jurisdictions may treat as income Volume Bonuses: - Typically treated as income - Subject to applicable income tax LUX Token Rewards: - Fair market value at receipt - Capital gains on subsequent sale Fee schedule subject to change with 30 days notice. Last updated: December 2024