SLAs for Market Makers
Spark has specific Service Level Agreements (SLAs) in place for market makers to ensure liquidity and efficient trading. These SLAs include:
Uptime and Availability: Market makers must ensure their trading systems are operational and available for a specified percentage of the time of 85%+.
Order Placement: Market makers must place a minimum number of buy and sell orders within a specific time frame to maintain liquidity. The exact number of required orders depends on the trading pair and current market conditions. Typically, market makers are expected to maintain a balanced order book with a constant presence on both sides of the market.
Spread Maintenance: The spread requirements vary depending on the tier of the trading pair:
Tier 1 Pairs: These are highly liquid pairs. The spread should be maintained within 0.1%.
Tier 2 Pairs: These pairs have moderate liquidity. The spread should be maintained within 0.25%.
Tier 3 Pairs: These are less liquid pairs. The spread should be maintained within 0.35%.
Volume Requirements: Market makers need to achieve a minimum trading volume over a defined period, ensuring consistent market activity.
Quote Responsiveness: Market makers must update their quotes promptly in response to market changes, within a hundred milliseconds.
Order Placement Requirements
Market makers must place a minimum number of buy and sell orders within a specific time frame to maintain liquidity. The exact number of required orders depends on the trading pair and current market conditions. Typically, market makers are expected to maintain a balanced order book with a constant presence on both sides of the market.
Spread Maintenance Requirements
The spread requirements vary depending on the tier of the trading pair:
Tier 1 Pairs: These are highly liquid pairs. The spread should be maintained within 0.1%.
Tier 2 Pairs: These pairs have moderate liquidity. The spread should be maintained within 0.25%.
Tier 3 Pairs: These are less liquid pairs. The spread should be maintained within 0.3%.
Timeframe: Trading volumes are calculated monthly. Market makers must meet the volume thresholds within each calendar month to qualify for incentives and ensure compliance.
*These SLAs are monitored regularly, and market makers who meet or exceed these requirements are eligible for incentives, such as reduced fees and rewards in Fuel points.
Liquidity Provider Requirements Tier-wise
| Requirement | Tier 1 Pairs | Tier 2 Pairs | Tier 3 Pairs |
|---|---|---|---|
Spread Maintenance | Spread within 0.1% | Spread within 0.25% | Spread within 0.3% |
Monthly Volume | $10 million per month | $5 million per month | $1 million per month |
Trading Pairs | WBTC, ETH, FUEL, USDC | MATIC, SOL, USDF | DOGE, PEPE |
Order Placement | Continuous competitive orders | Continuous competitive orders | Continuous competitive orders |
Uptime and Availability | 95% operational availability | 90% operational availability | 85% operational availability |
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