ZUBR Market Making Program

ZUBR is introducing its official ZUBR Market Making Program, aimed at securing liquidity on the platform from day one. We are happy to offer slots with identical commercial and connectivity terms to those who are interested. The program is the only source of market making arrangements on ZUBR. We will not be engaging with any market makers except for those participating in the program. Moreover, to guarantee transparency and security for its clients, ZUBR will not be engaging in market making with its own funds or algorithms. We treat our clients in a fair and equal manner.

The ZUBR trading platform does not expect a market maker (“MM”) to maintain a fixed spread for one of the instruments (BTCUSD, ETHUSD, ETHBTC) but rather to apply a spread-order size function for the quotes, as described below.

A MM is free to select any spread size within the limits for a given instrument, according to the algorithm for order size calculation. The spread size can be chosen once or multiple times as the MM prefers — it can even change with every order. ZUBR will control orders only for the size/spread ratio.

Market Making Program Specification

BTCUSD

  • The minimum spread is 10 bp (0.1%) with a minimum 10,000-contract order size.
  • The maximum spread is 19 bp (0.19%) with a minimum 100,000-contract order size.
  • When a MM increases the difference between the quotes within spread limits, order size should be increased by 10,000 contracts for each subsequent basis point.
  • A MM with a position greater than or equal to 200,000 contracts has the right to keep only a position closing order, but it should not deviate from the instrument’s Mark Price by more than 0.2%. Otherwise, the spread maintenance time will not be included in the total maintenance market marking time.

ETHUSD

  • The minimum spread is 10 bp (0.1%) with a minimum 5,000 contracts of order size.
  • The maximum spread is 40 bp (0.4%) with a minimum 50,000 contracts of order size.
  • When a MM increases the difference between the quotes within spread limits, order size should be increased by 1,500 contracts for each subsequent basis point.
  • A MM with a position greater than or equal to the 100,000 contracts has the right to keep only a close order, but it should not deviate from the instrument’s Mark Price by more than 0.4%. Otherwise, the spread maintenance time will not be included in the total maintenance market marking time.

ETHBTC

  • The minimum spread is 10 bp (0.1%) with a minimum 35-contract order size.
  • The maximum spread is 40 bp (0.4%) with a minimum 350-contract order size.
  • When a MM increases the difference between the quotes within spread limits, order size should be increased by 21 contracts for each of the next 2 basis points.
  • A MM with a position greater than or equal to 700 contracts has the right to keep only a close order, but it should not deviate from the instrument’s Mark Price by more than 0.4%. Otherwise, the spread maintenance time will not be included in the total maintenance market marking time.
InstrumentBTCUSDETHUSDETHBTC
Minimum spread10 bp10 bp10 bp
Maximum spread19 bp40 bp40 bp
Minimum size (contracts)10000500035
Maximum size (contracts)20000050000350
Spread step1 bp1 bp2 bp
Size step (contracts)10000150021
Close only position (contracts)200000100000700
Close only index max distance (contracts)20 bp40 bp40 bp

A MM is required to maintain quotes for any 2 out of 3 instruments, at his discretion.

If a MM has multiple one-sided active orders, to determine the fulfilment of market making program conditions, an order is taken with the minimum order size according to the market making program and the closest to the best price on the market.

The MM reward is the equivalent of $5,000 per month if program conditions are fulfilled.

Since the ZUBR trading platform has a relatively small price step and a target of ensuring liquidity from the start, we encourage MMs to follow the rule «one market maker — one price level». If the price level already has a size greater than or equal to your order size, then do not put a passive order at the same price but take a different price level. However, this guidance is optional, and the MM has the right to ignore it.

Commitment period

Each MM must maintain quotes for instruments at least 85% of trading time (i.e. excluding platform downtime). This means roughly one day of possible total downtime per week for the MM.

A MM also has the right to maintain a spread even smaller than the minimum required level, although the order size cannot be smaller than the minimum required for the instrument. With below-minimum spreads, accelerated fulfilment of program conditions will apply. That is, the narrower the quotation spread below the minimum required, the less trading time the MM will be expected to maintain both-sided quotes. Each basis point reduction in the difference between the prices quoted reduces proportionate maintenance time by 5%. For example, a MM could maintain quotes with a spread of 1 basis point — 9 basis points better than the minimum requirement. In this case, the MM is required to support them from 85/(100 + 9×5) ~ 59% of trading time.

There are no margin collateral requirements: a ММ itself determines how much it needs to fulfil the market maker program. However, we suggest a maximum leverage size of 5x.

ZUBR intends to take a soft approach to verifying the fulfilment of conditions for market making.

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