Market Making credits are used to make assessments of the orders placed by CoinEx Market Maker. There will be periodic snapshots of trading pairs taken to decide whether or not the bid/ask price set by the Market Maker falls within the valid interval so that the credits can be calculated based on the bid/ask prices.

**Rules**

The Market Making credits are calculated and accumulated based on the valid orders in buying and selling for every trading pair included in the random snapshot taken once every minute.

**Definition of a Valid Interval**

The trading pairs available on CoinEx are categorized into 4 tiers according to the market depth and liquidity, each with a specified valid interval.

Coins/Tokens |
Valid Interval % |

BTC | 0.5% |

BCH, BSV, EOS, ETH, LTC, XRP, USDC, TUSD, PAX, and GUSD |
1% |

ADA, DASH, ETC, NEO, ONT, QTUM, TRX, XMR, XLM, and ZEC |
2% |

Others |
3% |

**Calculation **

The formula is as follows.

Market Making Credit = (2 - Mid Price Spread Rate ÷ Valid Interval%) * Order Value ÷ 10000

Where Mid Price Spread Rate = (Bid/Ask Price - Mid Price) ÷ Mid Price

1. Mid Price = ( The Bid Price reaching accumulative order value of 100 USD from Bid1 + The Ask Price reaching accumulative order value of 100 USD from Ask1) /2

2. The valid interval equals the largest spread rate between Bid/Ask Price and Mid Price. There are currently 0.3%, 1%, 2% and 3% four valid interval rates set for the coins/tokens on CoinEx.

3. Mid Price Spread Rate equals the spread rate between Bid/Ask Price and Live Price. If Mid Price Spread Rate is greater than Valid Interval Rate, then the order is excluded from credit calculating.

4. The oder value is calculated by first multiplying the oder price and order amount and then converting the result into USD based on the exchange rate which you can obtain using CoinEx API.

5. There are no limits set for the value of each order.

6. The credits are rounded up with up to 4 decimal places reserved.

**Example 1**

In the ETHBTC market, the Bid and Ask Price reaching 100 USD order value are respectively 0.0298BTC and 0.0302BTC, making the Mid Price 0.03BTC.

If an ask order for 1 ETH is placed at 0.0303BTC with BTC/USD ratio being 7000. The order value will be 0.0303*1*7000=213.5USD.

In this case, ETH is the trading coin, the valid interval rate is 1%, and the Mid Price Spread Rate is 1%. The credit for this order, therefore, equals 0.0214.

Market Making Credit = (2 - 1% ÷ 1%) * 213.5 ÷ 10000

Where Mid Price Spread Rate = (0.0303 - 0.03) ÷ 0.03 = 1%

**Example 2**

In the BTCUSDT market, the Bid and Ask Price reaching 100 USD order value are respectively 5999 USDT and 6001 USDT, making the Mid Price 6000 USDT.

If a bid order for 0.01 BTC is placed at 5998 USDT with USDT/USD ratio being 0.993. The order value will be 5998 *0.01*0.993 = 59.56 USD.

In this case, BTC is the trading coin, the valid interval rate is 0.5%, and the Mid Price Spread Rate is 10.0333%. The credit for this order, therefore, equals 0.0115.

Market Making Credit = (2 - 0.0333% ÷ 0.3%) * 59.56 ÷ 10000

Where Mid Price Spread Rate = (5998 - 6000) ÷ 6000 = 0.0333%

**Note:** The valid interval is subject to necessary adjustments based on the market depth and liquidity. In addition, considering the price changes of the quote coin, the bid/ask price is calculated by the real-time ratio at the snapshot.

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