HTX to Launch Depth Assessment Trial for Futures Market Makers

Dear HTX Market Makers,

Greetings from HTX!

To offer our market makers more preferential maker fees, HTX will be launching a new assessment mechanism for USDT-margined futures and coin-margined futures.

The new assessment mechanism will take effect on Oct 1, 2022. The information below applies to the trial. We will make appropriate adjustments to the new assessment mechanism based on the outcome of the trial.

1. Applicable futures products: BTCUSDT perpetual and ETHUSDT perpetual futures only

2. The depth factor for BTCUSDT perpetual and ETHUSDT perpetual is set at 1.

3. Last price deviation and weight factor are set for BTCUSDT-perp and ETHUSDT-perp as follows:

BTCUSDT Perpetual	Last Price Deviation	<0.05%	[0.05, 0.1%]	(0.1, 0.2%]	(0.2, 0.3%]	(0.3%, 0.4%]
	Weight Factor	0	3	5	4	5
ETHUSDT Perpetual	Last Price Deviation	<0.05%	[0.05, 0.08%]	(0.08, 0.1%]	(0.1, 0.2%]	(0.2, 0.3%]
	Weight Factor	0	5	4	5	2

 

Depth Assessment for Maker Promotion

All market makers of USDT-margined futures or coin-margined futures are ranked by their provided monthly average cumulative depth. Top [0-10%] makers are entitled to Tier S maker fees, top (10%,30%] makers to Tier 1 maker fees, and top (30%,50%] makers to Tier 2 maker fees.

The market depth assessment of the previous month is conducted on the first day of each month, based on the GMT+8 time zone. If your tier is changed after the assessment, the changed fee rates will take effect on the 16th of each month.

 

Depth Calculation

HTX will take random screenshots of market makers’ open orders every day to record and calculate the total order value of applicable futures in USDT with different last price deviations. The total order value of each screenshot is tallied to obtain the cumulative order value of the day.

If the last price deviation is a%, b%, and c%, the order price range for each depth is captured as follows:

 

• Bids: [Last price * (1-a%), Last price], [Last price * (1-b%), Last price * (1-a%)], [Last price * (1-c%), Last price * (1-b%)]
• Offers: [Last price, Last price * (1+a%)], [Last price * (1+a%), Last price * (1+b%)], [Last price * (1+b%), Last price * (1+c%)]

 

Formula of Monthly Average Cumulative Market Depth

• Cumulative depth for a token of the day within an assessment term = Total order value with a% depth of the day * trading pair's depth weight * weight factor + total order value with depth (a%-b%) of the day * trading pair's depth weight * weight factor + total order value with depth (b%~c%) of the day * trading pair's depth weight * weight factor

                      Cumulative order value of the day within a certain depth range = ∑{Sum of order value when screenshots are taken}

                             Value of an order = Number of cont * Nominal value of the futures trading pair * Order price

• Cumulative depth of a token of the day = ∑(The token's cumulative depth as of the day within an assessment term)
• Cumulative depth of all tokens involved in the day = ∑ (Cumulative depth of a token of the day)
• Average cumulative depth of the day = ∑(All tokens' cumulative depth of the day/number of screenshots)
• Average cumulative depth of the month = ∑{Daily weighted average cumulative depth}/Number of days in the month

 

Here's an example:

Take placing BTCUSDT-perp for example. The last price is 20,000 USDT and 1 cont = 0,001 BTC when the screenshot is taken. You have placed the following orders within the last price deviation of 0.5%.

Sell 4 conts at 20,030 USDT with the last price deviation range of 0.1% - 0.2%

Sell 2 conts at 20,015 USDT within the last price deviation of 0.1%

Sell 5 conts at 20,010 USDT with the last price deviation of 0.1%

Sell Order

———————————————————————————————————

Buy Order

Buy 5 conts at 19,990 USDT within the last price deviation of 0.1%

Buy 4 conts at 19,970 USDT with the last price deviation range of 0.1% - 0.2%

Buy 2 conts at 19,975 USDT with the last price deviation range of 0.1% - 0.2%

The total order value with different prices is calculated as follows:

Total order value within the last price deviation of 0.1% is

5 * 0.001 * 19,990 USDT + 5 * 0.001 * 20,010 USDT + 2*0.001*20,015 USDT = 240.03 USDT

Total order value with the last price deviation range of 0.1% - 0.2% is

4 * 0.001 * 19,970 USDT + 2*0.001*19,975 USDT + 4 * 0.001 * 20,030 USDT = 199.95 USDT

As of the day, cumulative depth of BTCUSDT-perp during the assessment term is 240.03 * 1 * 4 + 199.95 * 1 * 3 = 1,559.97 USDT

 

HTX

September 27, 2022

 

HTX reserves the right to have sole discretion to amend or revise the terms of this event or cancel this event at any time and for any reasons without prior notice. HTX has no obligation to notify you of any such amendment, revision or cancellation.

The above is for information purposes only and HTX makes no recommendations or guarantees in respect of any digital asset, product, or promotion on HTX.

Risk Reminder: Trading digital assets and digital asset derivatives comes with high risks due to significant price volatility. Please fully understand all the risks and make prudent decisions before trading. Please read our detailed Risk ReminderHTX will not be responsible for your trading losses.

 

Appendix: Current promotional requirements for USDⓈ-margined futures and coin-margined futures market makers

Tier	Ranking Requirement (Monthly weighted maker trading volume)	Or	Ranking Requirement (Monthly weighted depth)	Or	Percentage of Maker Trading Volume Comparing One-way Mode Volume on the Platform	Or	Depth Assessment for Maker
Tier S	Worst performing 15% will be downgraded	/	Top 5%	/	≥1%	/	Top 10%
Tier 1	Best performing 10% will be upgraded and the worst 20% will be downgraded	/	(5%, 15%]	/	[0.5, 1%)	/	(10%, 30%]
Tier 2	Best performing 10% will be upgraded Worst performing 20% with a monthly weighted maker trading volume of ≥5 million USDT will be downgraded	/	(15%, 30%]	/	-	/	(30%, 50%]
Tier 3	Users whose monthly weighted maker trading volume falls below 5 million USDT will be eliminated.	/	-	/	-	/

 

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HTX reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and HTX makes no recommendations or guarantees in respect of any digital asset, product, or promotion on HTX. Prices of digital assets are highly volatile and trading digital assets involves risk. Please read our Risk Reminder text here.