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.

Eligibility for the Program

Formal enrollment is not required; all users who meet the Quality Score requirements, as described below, are automatically enrolled in the program.

Mechanics of Rewards Allocation

Total reward for a given 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 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:

$$\text{Market Reward Pool} = \text{Total Makers Reward Pool} \times \frac{\text{Market's Weight}}{\sum \text{of Markets' Weights}}$$

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Market's weight is determined using the following formulas:

$$\text{Market's weight} = max(min(0.01,\frac {1} {\text{Number of Markets}}), \frac {\text{Market Volume in the Period}} {\text{Total Volume in the Period}})$$

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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.

For inquiries regarding the Makers program, please contact us at [e-mail] or send us a message on Discord.

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