Market Makers

Program Tiers

LX Market Maker program tiers, obligations, rewards, and service level agreements

Market Maker Program Tiers

LX offers four distinct market maker tiers, each with specific requirements, obligations, and benefits. Tiers are evaluated monthly based on performance metrics.

Tier Overview

┌─────────────────────────────────────────────────────────────────────┐
│                    MARKET MAKER TIER STRUCTURE                       │
├─────────────────────────────────────────────────────────────────────┤
│                                                                      │
│  TIER 4: STRATEGIC PARTNER                                          │
│  ┌────────────────────────────────────────────────────────────┐     │
│  │  Volume: $10B+/month    │  Markets: 50+    │  Uptime: 95% │     │
│  │  Maker Fee: -0.020%     │  Spread: 2 bps   │  Depth: $5M  │     │
│  │  Benefits: Dedicated infra, custom SLAs, governance       │     │
│  └────────────────────────────────────────────────────────────┘     │
│                              ↑                                       │
│  TIER 3: PROFESSIONAL                                               │
│  ┌────────────────────────────────────────────────────────────┐     │
│  │  Volume: $1B+/month     │  Markets: 30+    │  Uptime: 92% │     │
│  │  Maker Fee: -0.010%     │  Spread: 3 bps   │  Depth: $1M  │     │
│  │  Benefits: 10Gbps, DMA, priority support                  │     │
│  └────────────────────────────────────────────────────────────┘     │
│                              ↑                                       │
│  TIER 2: ADVANCED                                                   │
│  ┌────────────────────────────────────────────────────────────┐     │
│  │  Volume: $100M+/month   │  Markets: 15+    │  Uptime: 90% │     │
│  │  Maker Fee: -0.005%     │  Spread: 5 bps   │  Depth: $250K│     │
│  │  Benefits: Priority lanes, dedicated support, metrics     │     │
│  └────────────────────────────────────────────────────────────┘     │
│                              ↑                                       │
│  TIER 1: STANDARD                                                   │
│  ┌────────────────────────────────────────────────────────────┐     │
│  │  Volume: $10M+/month    │  Markets: 5+     │  Uptime: 85% │     │
│  │  Maker Fee: 0.00%       │  Spread: 10 bps  │  Depth: $50K │     │
│  │  Benefits: Zero maker fees, standard API access           │     │
│  └────────────────────────────────────────────────────────────┘     │
│                                                                      │
└─────────────────────────────────────────────────────────────────────┘

Tier 1: Standard Market Maker

Entry-level tier for firms beginning their LX market making journey.

Requirements

MetricRequirement
Monthly Maker Volume$10,000,000+
Markets Quoted5+ pairs
Uptime85%+ during trading hours
Max Spread10 basis points
Quote Depth$50,000 per side
Min Capital$500,000

Obligations

Quoting Obligations:

  • Provide two-sided quotes 85% of trading hours
  • Maximum spread of 10 bps for assigned markets
  • Minimum $50K depth at best bid/offer
  • Response time to RFQ within 500ms

Reporting:

  • Monthly volume reports
  • Quarterly compliance attestation
  • Annual KYB refresh

Benefits

BenefitValue
Maker Fee0.00% (zero)
API Rate Limit1,000 req/sec
WebSocket Streams10 concurrent
SupportEmail (24h response)
Monthly Rebate Cap$10,000

SLA Targets

Performance SLAs (Tier 1):
- Order acknowledgment: < 10ms (P99)
- Fill notification:     < 15ms (P99)
- Cancel confirmation:   < 5ms (P99)
- System availability:   99.5%

Tier 2: Advanced Market Maker

For established firms with proven track records and higher volume requirements.

Requirements

MetricRequirement
Monthly Maker Volume$100,000,000+
Markets Quoted15+ pairs
Uptime90%+ during trading hours
Max Spread5 basis points
Quote Depth$250,000 per side
Min Capital$2,000,000

Obligations

Quoting Obligations:

  • Provide two-sided quotes 90% of trading hours
  • Maximum spread of 5 bps for assigned markets
  • Minimum $250K depth at best bid/offer
  • Response time to RFQ within 200ms

Market Participation:

  • Quote at least 3 depth levels
  • Participate in new market launches
  • Provide liquidity during volatility events

Benefits

BenefitValue
Maker Fee-0.005% (negative)
API Rate Limit5,000 req/sec
WebSocket Streams50 concurrent
SupportDedicated Slack channel
Monthly Rebate Cap$50,000
Priority LanesYes

SLA Targets

Performance SLAs (Tier 2):
- Order acknowledgment: < 1ms (P99)
- Fill notification:     < 2ms (P99)
- Cancel confirmation:   < 500us (P99)
- System availability:   99.9%

Additional Perks

  • Real-time performance dashboard
  • Weekly strategy calls with DEX team
  • Early access to new features (beta)
  • Reduced collateral requirements (80%)

Tier 3: Professional Market Maker

Institutional-grade tier for high-volume professional trading operations.

Requirements

MetricRequirement
Monthly Maker Volume$1,000,000,000+
Markets Quoted30+ pairs
Uptime92%+ during trading hours
Max Spread3 basis points
Quote Depth$1,000,000 per side
Min Capital$10,000,000

Obligations

Quoting Obligations:

  • Provide two-sided quotes 92% of trading hours
  • Maximum spread of 3 bps for assigned markets
  • Minimum $1M depth at best bid/offer
  • Response time to RFQ within 50ms

Liquidity Commitments:

  • Quote at least 5 depth levels
  • Maintain positions during market stress
  • Support new market bootstrapping
  • Participate in protocol governance

Benefits

BenefitValue
Maker Fee-0.010% (negative)
API Rate Limit20,000 req/sec
WebSocket Streams200 concurrent
Network Connection10 Gbps dedicated
Support24/7 phone + Slack
Monthly Rebate Cap$200,000
Direct Market AccessYes

SLA Targets

Performance SLAs (Tier 3):
- Order acknowledgment: < 100us (P99)
- Fill notification:     < 200us (P99)
- Cancel confirmation:   < 50us (P99)
- System availability:   99.95%

Premium Features

  • Co-location options available
  • Custom order types on request
  • Direct FIX connectivity
  • Advanced risk management tools
  • Quarterly business reviews

Tier 4: Strategic Partner

Elite tier for the largest global market making operations.

Requirements

MetricRequirement
Monthly Maker Volume$10,000,000,000+
Markets Quoted50+ pairs
Uptime95%+ during trading hours
Max Spread2 basis points
Quote Depth$5,000,000 per side
Min Capital$50,000,000

Obligations

Quoting Obligations:

  • Provide two-sided quotes 95% of trading hours
  • Maximum spread of 2 bps for assigned markets
  • Minimum $5M depth at best bid/offer
  • Response time to RFQ within 10ms

Strategic Commitments:

  • Lead liquidity in major pairs
  • Support protocol development
  • Participate in governance proposals
  • Emergency liquidity provision

Benefits

BenefitValue
Maker Fee-0.020% (negative)
API Rate LimitUnlimited
WebSocket StreamsUnlimited
Network ConnectionCustom infrastructure
SupportDedicated account team
Monthly Rebate Cap$500,000
Governance RightsYes

SLA Targets

Performance SLAs (Tier 4):
- Order acknowledgment: < 10us (P99)
- Fill notification:     < 20us (P99)
- Cancel confirmation:   < 5us (P99)
- System availability:   99.99%

Strategic Benefits

  • Custom matching engine configuration
  • Protocol fee sharing arrangements
  • Board observer rights
  • Joint marketing initiatives
  • Early access to L2/rollup deployments

Tier Evaluation

Monthly Assessment

Tiers are evaluated on the first business day of each month based on:

# Tier Score Calculation
tier_score = (
    volume_score * 0.30 +      # 30% weight
    uptime_score * 0.25 +      # 25% weight
    spread_score * 0.20 +      # 20% weight
    depth_score * 0.15 +       # 15% weight
    market_count_score * 0.10  # 10% weight
)

# Tier Assignment
if tier_score >= 95: tier = 4
elif tier_score >= 85: tier = 3
elif tier_score >= 70: tier = 2
else: tier = 1

Grace Periods

TransitionGrace Period
UpgradeImmediate
Downgrade (1 tier)1 month warning
Downgrade (2+ tiers)Immediate
New MM3 month ramp-up

Appeals Process

Market makers may appeal tier decisions within 5 business days by:

  1. Submitting written appeal to [email protected]
  2. Providing supporting documentation
  3. Scheduling review call with MM Relations

Compliance Requirements

All Tiers

RequirementFrequency
KYB DocumentationAnnual
Beneficial OwnershipAnnual
Trading AuthorizationAnnual
Insurance VerificationAnnual
Technical Security AuditAnnual

Tier 3-4 Additional

RequirementFrequency
SOC 2 Type IIAnnual
Penetration TestingSemi-annual
Business Continuity PlanAnnual
Disaster Recovery TestSemi-annual

Application Process

Tier 1-2

  1. Complete online application
  2. Submit KYB documentation
  3. Technical integration review
  4. Testnet certification
  5. Production access (2-4 weeks)

Tier 3-4

  1. Initial consultation call
  2. Detailed application package
  3. On-site/virtual due diligence
  4. Custom agreement negotiation
  5. Technical integration
  6. Production access (4-8 weeks)

Contact

Tier 1-2 Applications:

Tier 3-4 Inquiries:

Program terms subject to change with 30 days notice. Last updated: December 2024

Market Maker Program

Professional market making on LX - Ultra-low latency, competitive rebates, and institutional-grade infrastructure

API Access

Dedicated API endpoints, rate limits, priority access, and technical specifications for LX market makers

On this page

Market Maker Program TiersTier OverviewTier 1: Standard Market MakerRequirementsObligationsBenefitsSLA TargetsTier 2: Advanced Market MakerRequirementsObligationsBenefitsSLA TargetsAdditional PerksTier 3: Professional Market MakerRequirementsObligationsBenefitsSLA TargetsPremium FeaturesTier 4: Strategic PartnerRequirementsObligationsBenefitsSLA TargetsStrategic BenefitsTier EvaluationMonthly AssessmentGrace PeriodsAppeals ProcessCompliance RequirementsAll TiersTier 3-4 AdditionalApplication ProcessTier 1-2Tier 3-4Contact