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Special Liquidity Provision Policy

Liquidity providers are key members of LXDX’s ecosystem. LXDX operates all market maker programs in a fully transparent and open manner.

Participants who participate under the following program will be grandfathered in until March 1st, 2020, providing they begin satisfying the Requirements before Jan 31, 2019 and continue to fulfill the program's Requirements.

1. Requirements

1.1 User is expected to make best efforts to provide two-sided markets within the Exchange's products.

1.2 Satisfy the Market Maker Time Requirement in either:

• One call and one put warrant
• Two spot pairs out of BTC/TUSD, ETH/TUSD, XRP/TUSD, and TUSD/USDT

1.3 The Market Maker Time Requirement mandates that the Liquidity Provider post Eligible Quotes during at least 50% of a market's available trading hours.

• 1.3.1 Qualifications are determined on a monthly basis.
• 1.3.2 Given that all markets trade for 23 hours per day, assuming there are 30 days in applicable month, to qualify as satisfying the time requirement, Eligible Quotes must be in the market for 11.5 * 30 = 345 hours.

1.4 Eligible Quotes are defined by product. Eligible Quotes are always two sided. Each quote in the market must quality as either a Tight Quote, a Fair Quote, or a Deep Quote:

Tight Quote

Fair Quote

Deep Quote

1.5 Quote validity is calculated on a per-minute basis such that if the User had an Eligible Quote for either the entirety of the minute or part of the minute and received a fill, credit is awarded.

• 1.5.1 For each minute, the calculation of width allows for five seconds of forgiveness. Only the best 55 seconds are included in the calculation.

1.6 For the minute following a minute where an Eligible Quote was filled, the quote notional requirement is reduced by 50% and the width requirement is doubled.

1.7 The Designated Market Maker Requirements mandates the Liquidity Provider posts DMM Quotes during at least 80% of the market's available trading hours.

• 1.7.1 Qualifications are determined on a monthly basis
• 1.7.2 Given that all markets trade for 23 hours per day, assuming there are 30 days in applicable month, to qualify as satisfying the time requirement, DMM Quotes must be in the market for 18.4 * 30 = 552 hours.

1.8 A quote satisfies the following DMM Quote requirement earns both a point for being an Eligible Quote and is considered a DMM Quote.

1.9 A DMM Quote must satisfy:

DMM Quote

2. Incentives

2.1 Every User who satisfies the Program's Requirements will receive a 15% fee rebate in the corresponding product credited to their account in TUSD regardless of pre-registration in the Program.

2.2 Users who pre-register in the Program will have their Trade Ratio requirements waived.

2.3 For each product on the Exchange, 5% of all Exchange fees collected in the month are awarded to pre-registered market makers satisfying the Program's Requirements.

• 2.3.1 2% of the reserved 5% are awarded to the liquidity provider active in the market for the most minutes with Eligible Quotes.
• 2.3.2 1% of the reserved 5% are awarded to the second and third place liquidity provider with respect to total minutes displaying Eligible Quotes.
• 2.3.3 The last 1% is divided evenly between all remaining pre-registered market makers.

2.4 For each pre-registered User in the Program who satisfies the Program Requirements in six or more products, the User shall receive an adjustment of their Maker rebate from 2 basis points to 3 basis points for all trading on the Exchange in the corresponding month.

2.5 For each pre-registered User in the Program who satisfies the Designated Market Maker Requirements in a product, the Liquidity Provider will receive additional benefits.

• 2.5.1 An additional 5,000 TUSD will be rewarded to each Liquidity Provider who finishes in the top 3 in terms of active minutes in the market with DMM Quotes.
• 2.5.2 All taker fees on the product are additionally reduced by an additional 5%.
• 2.5.3 The Maker rebate in the qualifying product will be increased to 3 basis points.

3. Registration

3.1 Interested users should contact marketops@lxdx.co with a brief description of their capabilities, their preferred connectivity method, and which products they would like to cover.

3.2 Anonymized information displaying the current pre-registered market makers by product will be displayed at lps.lxdx.co.

4. Transparency

4.1 We do not under any circumstances sign exclusive deals with market makers.

• 4.1.1 We value the contribution of liquidity providers highly and will certainly take recommendations on adjustments or amendments to our programs. Understand, however, that we must make these changes available for everyone.

4.2 We will provide anonymized volume information on a quarterly basis detailing the aggregate activity of the Exchange's liquidity providers. We do this in the interest of maximizing transparency.