---
title: "🔬 Liquidity Rewards in Depth"
description: >-
  Learn how liquidity rewards work, including core mechanics, minimum size
  cutoffs, max spread rules, and how to earn USDC payouts daily.
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

## 💧 What are liquidity rewards?

Liquidity rewards are USDC payouts provided to users for placing ***limit orders*** that sit on the order book and make trading smoother for everyone.

More resting orders in the order book = steadier prices, faster matches, and a better trading experience for all.

## 💧 How Liquidity Rewards Work

USDC rewards are provided for placing qualifying resting orders within eligible markets, as specified on the [Rewards Page](https://forkast.gg/rewards). You can also check your accumulated rewards for the day on the rewards page.

## ⚙️ 1.0 Core Mechanics

- Orders must meet the minimum order/share size (e.g ≥50 or ≥200 shares, listed on rewards page)
- Orders must be inside the reward zone (midpoint ± max spread).
- If there is no qualifying bid or ask, no rewards.

### 📏 1.1 Minimum Size Cutoff

- Only orders that meet the minimum share size (e.g 50 or 200 shares) count toward rewards.
- Best ask = the lowest sell price where the total number of shares offered is at least the cutoff.
- Best bid = the highest buy price where the total number of shares offered is at least the cutoff.
- Rewards are only based on the midpoint if both a valid bid and a valid ask exist.

![](https://app.archbee.com/api/optimize/9iBxGyOic4cRFh1ToOVqV/EUGeOUzYTHVQPuyqC6s1a_.blob "Rewards rely on this midpoint if both qualifying sides exist.")

### 📏 1.2 Max Spread

Your orders must be inside the range of the max spread around the MidPoint to qualify:

$$
\text{Bottom} = \text{MidPoint} - \text{max spread} \newline \text{Top} = \text{MidPoint} + \text{max spread}
$$

### 💧 1.3 Example of Earning liquidity rewards:

**Rules**: Minimum size = 50, Midpoint = $0.50 and Max-Spread = $0.02:

The following orders will earn liquidity rewards if a ***limit order*** of 50 or more shares are placed:

- Example 1) Buy $0.48 (bottom of max spread).

- Example 2) Buy $0.52 (top of max spread).

![](https://api.archbee.com/api/optimize/9iBxGyOic4cRFh1ToOVqV/pYqwvLyo3AhRsvu5lO8io_.blob)

### 💧 1.4 Double-Sided Liquidity Rule

- When the midpoint is within $0.10 – $0.90 (e.g., $0.11 or $0.89), you can earn rewards from just one side (bid or ask).
- When the midpoint is below $0.10 or above $0.90 (e.g., $0.09 or $0.91), you must provide liquidity on both sides (buy and sell) to qualify.
- This prevents one-sided markets in near-certain outcomes from unfairly collecting rewards.

### 📏 1.5 Additional Rules

1. No Qualifying Orders = No Rewards
   - If no user’s orders meet the rules in a market, there are no rewards for that day.
2. Real-Time Calculations
   - Rewards are re-checked every minute as long as your orders stay valid.
3. Active Markets Only
   - Liquidity must be provided only on ongoing markets to qualify. Pending, ended, or resolved markets don’t pay rewards.

![](https://api.archbee.com/api/optimize/9iBxGyOic4cRFh1ToOVqV/FdGdTivZv3PfHjRRJm4kn_.blob)

![](https://api.archbee.com/api/optimize/9iBxGyOic4cRFh1ToOVqV/JboWbgl5sB5SVvX7Pu-FT_.blob)

Example of orderbook and orders that can be placed to earn liquidity rewards:

**Learn more**

Rewards are paid out automatically every day at \~midnight UTC. 

To read more about the specific calculations and formulas that determine rewards, visit our [Liquidity Calculation Equations](/knowledge-center/platform-rewards/liquidity-incentives/liquidity-calculation-equations)