What is the WhiteBIT Market-Making program?

WhiteBIT Market-Making program is a special offer from the exchange for professional traders or market-making companies that provide liquidity on the platform.

Market makers act as intermediaries who continuously quote bid and ask prices, ensuring a smooth trading process. Their activities contribute to market stability and enable traders to execute trades quickly and efficiently, even in conditions of low liquidity.

How do market makers function in the cryptocurrency sphere?

Market makers use complex algorithmic models and sophisticated trading strategies, constantly monitoring market conditions. They analyse indicators such as trading volumes, price changes and market sentiment. Based on this analysis, market makers dynamically change their quotes, buy and sell prices, to maintain balance in the order book and encourage trader activity. Their profit comes from the spread, the difference between the buy and sell prices, and their activities improve market liquidity, stability, and efficiency.

Who is a market maker in the cryptocurrency environment?

The role of market maker can be performed by both individual traders and automated systems. Human market makers manually analyse the market situation, assess the balance of supply and demand, and monitor news and other factors that affect prices. They adapt their trading strategies based on their own experience and market changes.

 

Unlike centralised exchanges (CEX), which use traditional order books, decentralised exchanges (DEX) typically operate on the principle of automated market making (AMM). In this case, liquidity is provided by smart contracts that automatically regulate the exchange between assets without the involvement of classic orders.

The role of bots in market making

Specialised trading bots also act as market makers, serving as a kind of intermediary between buyers and sellers. They automatically manage orders, maintain liquidity and respond to changes in market conditions. Such programmes calculate optimal buy and sell prices, taking into account factors such as trading volumes, supply and demand, trends, and market behaviour.

A bot can be developed and managed by an individual user or a company that specialises in algorithmic trading.

Key terms and benefits of the program

Conditions

The minimum requirement for entry into the spot market maker program is a maker volume of $100 million over the last 30 days.

 

The minimum requirement for a market maker to trade futures is ≥2% of the maker's volume of the total volume on the WhiteBIT futures platform over the last 30 days (at least $30 million).

Advantages

Super-low trading fees: discounts for spot market makers can reach up to -0.010% of the maker fee and 0.02% of the taker fee, depending on the monthly trading volume. Discounts for futures market makers can reach up to -0.02% maker fee and up to 0.032% taker fee, depending on monthly trading volume.

Additional tools for market makers:

 

• Subaccounts → allow you to separate strategies/clients. You can effectively manage multiple strategies or client relationships with improved control and transparency, optimising risk management and capital allocation;
• Colocation → less delay in trading orders. Reduce network latency to execute trades at lightning speed and gain a competitive edge in the market;
• API → full automation, orders, history, transfers. With our API, you can automate trading strategies, access real-time market data, and execute trades effortlessly;
• Personalised support 24/7. Providing personalised assistance, quickly resolving your queries and ensuring a smooth and efficient trading experience.

Who is the Market-Making program suitable for?

The program is suitable for:

 

• professional traders or market-making companies that have sufficient capital and trading algorithms to maintain liquidity;

• institutional players who value high speed, low latency, sub-accounts and special conditions;

• those who can ensure a significant volume of trading.

If you are a retail trader with a small volume, a program for market makers will likely not be effective for you due to the high entry thresholds.

How to join the program?

To become a participant of the WhiteBIT market-making program, you need to do the following:

 

1. Fill out the form on the WhiteBIT website.

2. Sign up on WhiteBIT, pass KYB verification, confirm trading volumes, and perform technical integration.
3. Start trading and increase your volume to get even better terms.

Key risks and nuances

Market making comes with several risks and challenges:

 

• Market volatility. Sharp price fluctuations can lead to significant losses for market makers.
• Liquidity risk. For illiquid or new cryptocurrencies, market makers may encounter difficulties in matching buy and sell orders due to insufficient trading activity.
• Regulatory risks. Possible changes in legislation or restrictions imposed by regulators may complicate the activities of market makers.
• Technical glitches. Problems with internet connection or malfunctions in trading algorithms can disrupt the market-making process.
• Market manipulation. Unscrupulous participants may use spoofing, artificial transactions or front-running to influence prices and mislead other traders. Such actions distort market signals and can harm investors.

Support

In case of any questions related to the functionality of our exchange, you can:

• Leave a request on our website;
• Write to the support email: support@whitebit.com;
• Write to the chat using the button in the lower right corner of the screen (in the upper right corner of the WhiteBIT app, click ).