Market-Making on HitBTC

Market-making on HitBTC is an advantageous offer for those who enjoy ruling the markets and know the mechanics of exchange.

We are now offering monthly market-maker contracts with very attractive conditions: cash incentives and rebate bonuses. Moreover, we provide the best APIs to our market makers. 

Contracts listed in the table below are valid for BTC, LTC, DOGE and other coins. We add a new coin to the exchange if two persons take MM contracts to support this coin on our exchange. One contract is valid only for one currency pair, and a market maker is eligible to take only one contract of each category.

We monitor all market-making activity and review the existing contracts every month. To help our market makers to build the most efficient trading strategy, we provide them with the detailed daily performance reports.

Available Contracts

Contract Category Admissible Size1 Maximum Spread Maintenance Condition Rebate Bonus2 Cash Incentive
Contract XS

 1 BTC

≤ 0.3%

0.01%1,000 USD
Contract S

 5 BTC

 0.8%

0.015%2,000 USD
Contract M

≤ 50 BTC

 2%

0.015%3,000 USD
Contract L

≤ 200 BTC

 3%

0.02%5,000 USD
Contract XL

≤ 1000 BTC

≤ 3.5%

0.04%10,000 USD
Total Potential Earnings and Benefits   0.1% 21,000 USD

1 The admissible size is defined as the sum of all orders for a single-side.
2 The rebate bonus is applied to the standard 0.01% rebate for limit orders.

Details:

If a limit order is executed immediately, then such order will be considered a market order and will be charged the standard
0.1% market order execution fee. Rebates are valid for all limit orders placed while acting within a contract.

NOTE: In order to receive the Rebate Bonus, a market maker must stay in the spread for at least 80% of one (1) trading day (00:00:00.000 UTC - 23:59:59.999 UTC). To receive the cash incentive, it is required to stay in the spread 90% of a one (1) month period (grace period: 48 hours of downtime).

The contracts are such that upon fulfilling a condition your benefits from rebates and cash incentives are cumulative. This implies that you can receive a maximum rebate of 0.1% and 21,000 USD per month if your market-making activity is successful.  

Rebate bonuses earned during a trading day are applied on the next day. The cash incentive is paid-out upon the contact's successful completion and only if the size, spread and time conditions of the contract are satisfied.

 

How MM Contracts Work?

The mathematics behind fulfilling an MM contract is quite simple. Let us take the example of an XS contract.

The contract stipulates that you will hold a volume of 1 BTC on the buy side, a volume of 1 BTC on the sell side,
and a spread of 0.3%.

First, we will take a snapshot of your standing orders at 00:00:00.000 UTC, which we consider the starting point of your daily MM contract, and we are assuming your standing orders had the following distribution (this is just an example):

BuySell
0.1 BTC @ 300.00 USD0.4 BTC @ 600.00 USD
0.2 BTC @ 315.00 USD0.1 BTC @ 500.00 USD
0.3 BTC @ 320.00 USD0.1 BTC @ 470.00 USD
0.4 BTC @ 325.00 USD0.4 BTC @ 400.00 USD

In this case, you filled the criteria that on both the sell and the buy sides, the volume of your standing orders is 1BTC, making it 2 BTC in total.

Calculating the Spread condition

Your spread is defined by the following formula:

In the case of the order book shown above, we would have the spread equal to

Therefore, this order book fails the market-making conditions.

Every time you place a new order, the existing order is changed or removed, and the MM conditions are recalculated.

Ready to start?

If you want to take an MM contract, please contact us at relations@hitbtc.com.

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