Liquidity Rewards in Depth

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 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 1 2 max spread your orders must be inside the range of the max spread and the midpoint to qualify bottom \[midpoint − max spread] and top \[midpoint + 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) 1 4 double sided liquidity rule when the midpoint is within $0 10 – $0 90, you can earn rewards from just one side (bid or ask) example $0 11 or $0 89 when the midpoint is below $0 10 or above $0 90, you must provide liquidity on both sides (buy and sell) to qualify example $0 09 or $0 91 this prevents one sided markets in near certain outcomes from unfairly collecting rewards 1 5 additional rules no qualifying orders = no rewards if no user’s orders meet the rules in a market, there are no rewards for that day real time calculations rewards are re checked every minute as long as your orders stay valid active markets only liquidity must be provided only on ongoing markets to qualify pending, ended, or resolved markets don’t pay rewards 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 docid\ ltw3bmn hafadjbk7zekv