> For the complete documentation index, see [llms.txt](https://support.backpack.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://support.backpack.exchange/exchange/programs/market-maker-program.md). # Market Maker Program Users participating in Backpack's market maker program have access to maker rebates plus a share of a $325k monthly rewards pool for providing liquidity across spot and perpetual futures markets. **To be eligible for this program, please reach out to us at** [**vip@backpack.exchange**](mailto:vip@backpack.exchange) *** ### Market Maker Rebates
MM tiers can be reached **either** by Total Maker Share or Adjusted Maker Share, whichever is highest. The Adjusted Maker Share model rewards traders for providing liquidity on lower liquidity markets. Each market has a multiplier (as presented below), which is used to calculate the Adjusted Volume.
Adjusted maker share is calculated by dividing a user's total adjusted maker volume from that month by the total adjusted maker volume of all users across all markets in each instrument category. MMs can also unlock MM tiers through their Total Maker Share, which does not factor in market multipliers. For Total Maker Share, we take the user’s total maker volume and divide it by the total maker volume of all users across all markets in each instrument category without applying any multipliers. #### MM Tier Calculation and Payout On the last day of every month, we will calculate the Total Maker Share and Adjusted Maker Share for each user and choose the **highest** between the two to determine their MM tier / fees for the month. Futures rebates are instantly credited after every fill. Spot rebates are credited manually to the user’s Backpack account the following month. *** ### Market Maker Monthly Rewards Backpack has allocated $325,000 in monthly rewards to market makers, based on their maker volume share, depth and liquidity score. Of the total reward pool, $250,000 is allocated to perpetual futures and $75,000 to spot markets. Within each instrument, markets are grouped into tiers. Each tier receives a portion of that instrument’s reward pool and covers a specific set of trading pairs. (tier and pool tables) The rewards are distributed per symbol as follows:
To account for instances where a symbol is added in the middle of the month / during an ongoing epoch, a symbol’s reward will be based on the number of days each symbol was active during the month (the timestamp of first trade is considered the start). The formula is: Individual Pair Reward % = Pair's Active Days / Sum of All Pairs' Active Days Example Let's say we have three Tier 3 futures pairs in a 30-day month: * Pair A: Active for 30 days * Pair B: Active for 30 days * Pair C: Active for 10 days Total active days across all pairs = 70 days (30 + 30 + 10) Therefore: * Pair A receives: (30/70) = 37.5% of Tier 3 Futures rewards * Pair B receives: (30/70) = 37.5% of Tier 3 Futures rewards * Pair C receives: (10/70) = 25% of Tier 3 Futures rewards #### Scoring System For Monthly Rewards A user’s share of the reward pool for a given pair is based on their **Blended Score**, which combines their **Volume Score** and **Liquidity Score**. For each market: * **Effective Volume** = your maker volume × your **Depth Multiplier** * **Volume Score** = your effective volume ÷ effective volume of all MMs in the program * **Liquidity Score** = your Liquidity Metric ÷ sum of all MMs’ Liquidity Metrics * **Liquidity Metric** = Average Size ÷ Average Spread × Uptime Score * **Uptime Score** = Active Snapshots ÷ Total Snapshots * **Blended Score** = (Volume Score × 0.8) + (Liquidity Score × 0.2) * **Reward** = Blended Score × Monthly Reward Pool for that market **Depth Multiplier** *Depth multiplier goes live in November 2026.* The Depth Multiplier rewards market makers who consistently quote size on both sides of the book near mid. 1. At each snapshot, we measure your resting depth on each side within the tier’s band from mid, and take the **smaller of the two sides**. 2. Each snapshot is scored as that depth ÷ the tier’s depth threshold, capped at 1.0. * A snapshot where you meet the threshold scores 1.0. * A snapshot where you’re below it gets partial credit. * A snapshot where you’re quoting only one side, or not quoting, scores 0. 3. Your Depth Multiplier is the average of your snapshot scores for that market over the month, starting from your first quote in that market. **The minimum multiplier is 0.25.** Here's an example for a T1 market: 1. If you consistently quote $30,000 per side, each snapshot scores 0.6, so your multiplier is **0.6**. 2. If you quote $100,000 per side half the time and nothing the rest of the time, each snapshot scores 1.0 or 0, so your multiplier is **0.5**. Depth above the threshold doesn’t make up for snapshots where you’re absent. 3. If you consistently quote $10,000 per side, each snapshot scores 0.2, so your multiplier is **0.25** because of the floor. The multiplier is calculated separately for each market and only affects the Volume Score. The Liquidity Score is unchanged. **Futures depth thresholds** | Tier | Markets | Spread from mid | Depth threshold (per side) | | ------ | ------------------------------- | --------------- | -------------------------- | | Tier 1 | BTC, ETH, SOL | 10 bps | $50,000 | | Tier 2 | XRP, BNB, SUI, DOGE, PAXG, HYPE | 10 bps | $15,000 | | Tier 3 | All other crypto perps | 25 bps | $5,000 | | Tier 4 | Equity perps | 20 bps | $10,000 | **Spot depth thresholds** | Tier | Markets | Spread from mid | Depth threshold (per side) | | ------ | ----------------------------------- | --------------- | -------------------------- | | Tier 1 | BTC, ETH, SOL | 10 bps | $25,000 | | Tier 2 | XRP, BNB, SUI, PAXG, DOGE, HYPE, BP | 15 bps | $5,000 | | Tier 3 | MON, XPL, APT, SEI | 25 bps | $1,000 | #### MM Reward Calculation Example BTC-PERP (Tier 1 futures) has a $23,333 monthly pool, which is $70,000 split equally across BTC, ETH and SOL. There are two market makers:
MetricMM AMM B
Maker volume$50,000,000$50,000,000
Depth Multiplier0.6 (consistently quoted $30k per side against the $50k threshold)1.0 (consistently met the $50k threshold)
Effective volume$30,000,000$50,000,000
Volume Score37.5%62.5%
Liquidity Score40%60%
Blended Score0.8 × 37.5% + 0.2 × 40% = 38.0%0.8 × 62.5% + 0.2 × 60% = 62.0%
Reward$8,867$14,467
### Further Information * All new MMs will enjoy MM5 maker fees for their first month; thereafter, fees will be determined based on the user’s market share and volumes at the end of the fee holiday period. **Backpack Exchange does not, and will not entertain special fee deals with any MM. Fee schedules with all MMs are the same.** * MMs participating in this program are not able to participate in other programs. * MMs must receive at least 1% of the total allocation to be eligible for rewards in a given month. * For the liquidity score calculation, we only consider orders placed within 100 bps of mid. * Depth bands and thresholds are reviewed periodically and may be adjusted as market liquidity improves. * MMs must comply with Backpack Exchange’s User Agreement and all applicable policies and procedures. * Backpack Exchange reserves the right to modify this program at any time when appropriate. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://support.backpack.exchange/exchange/programs/market-maker-program.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.