# Market Makers and Liquidity Provision

Market makers are integral participants in ensuring consistent liquidity, price stability, and competitive spreads on our cryptocurrency exchange. By placing both buy and sell orders within defined price ranges, market makers mitigate volatility, facilitate smoother trading experiences, and attract organic liquidity from retail and institutional traders.

### Liquidity Requirements and Depth Targets

To establish robust initial liquidity and foster organic growth, market makers will adhere to structured depth requirements and liquidity provisions as outlined below:

**Initial Phase (1–3 Months)**

* **Level 1**: Maintain a minimum liquidity depth of $500,000–$1,000,000 within ±2% of the average market price for primary trading pairs (e.g., BTC/USDT, ETH/USDT).
* **Level 2**: Provide enhanced liquidity depth of $1,000,000–$2,000,000 within ±2% of the average market price for primary trading pairs (e.g., BTC/USDT, ETH/USDT).

**Growth Phase (3–6 Months)**

* **Level 1**: Expand liquidity depth to $3,000,000–$5,000,000 within ±3% of the average market price.
* **Level 2**: Further deepen liquidity to $5,000,000–$10,000,000 within ±3% of the average market price.

### Key Performance Indicators (KPIs)

Market makers will be evaluated against the following performance metrics:

**Bid/Ask Spread**: Maintain target spreads below 0.1% for leading pairs.

**Slippage**: Limit slippage to a maximum of 0.5% for orders up to $100,000 during the growth phase.

**Trading Volume**:

* **Level 1**: Achieve minimum daily trading volumes of $10M–$15M in Q1 to stimulate organic liquidity.
* **Level 2**: Reach daily trading volumes of $15M–$20M to reinforce liquidity depth.

### Incentives for Market Makers

To encourage active and sustained participation, market makers are offered favorable fee structures:

| Level | Maker Fee |
| ----- | --------- |
| 1     | -0.001%   |
| 2     | -0.002%   |

Negative maker fees represent rebates, rewarding market makers who contribute significantly to market depth and stability. These incentives ensure alignment of interests between market makers and our platform, promoting long-term collaborative growth.

If you are interested in becoming a market maker, please contact us at [partner@evedex.com](emailto:partner@evedex.com).


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.evedex.com/key-features-and-components/trading-platform-and-matching-engine/market-makers-and-liquidity-provision.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.