Liquidity Enhancement Program

Last update as of 18 March 2025 8 AM UTC.

Citrex Markets will be giving out $550,000 in rewards to market makers participating in the Liquidity Enhancement Program (CLEP)

1. Introduction

The Citrex Markets Liquidity Enhancement Program (CLEP) is an initiative designed to significantly improve the liquidity and trading volume across the Citrex Markets trading platform.

Through a structured reward system funded by a monthly reward pool in SEI, the program seeks to incentivize both retail and institutional traders to contribute to a more robust trading environment.

Participants are not required to sign up in advance; however, they must satisfy the eligibility criteria, which includes maintaining a minimum margin balance of $50,000. This program will be active from the effective date until 14 July 2025, during which it will be governed by the specific Terms & Conditions set forth in this document.

2. Rewards Structure

A reward pool of $550,000 equivalent in SEI tokens is distributed among participants based on their contributions to market liquidity through trading in the form of perpetual swaps.

The reward pool will be distributed across six epochs, starting from the Effective Date.

• Epoch 1: $50,000

• Epoch 2: $100,000

• Epoch 3: $100,000

• Epoch 4: $100,000

• Epoch 5: $100,000

• Epoch 6: $100,000

This distribution is specifically tailored to reflect the trading volume and liquidity needs of each asset:

• BTC (Bitcoin): 20% (for example $10,000 during Epoch 1)

• ETH (Ethereum): 20% (for example $10,000 during Epoch 1)

• SOL (Solana): 15% (for example $7,500 during Epoch 1)

• SEI (Sei Network): 15% (for example $7,500 during Epoch 1)

• XRP (Ripple): 15% (for example $7,500 during Epoch 1)

• DOGE (Doge): 15% (for example $7,500 during Epoch 1)

Each eligible trade made by participants contributes to their individual score, which ultimately determines their share of the monthly reward pool. The specific criteria for scoring and reward allocation are detailed in the following sections of the program documentation.

This structured reward system is designed to incentivize active and effective participation in market making and liquidity provision on Citrex Markets.

3. Market Quality Scoring

3.1 Overview

The objective of market quality scoring is to compare the relative liquidity contribution of each order in a given order book, and reward this contribution accordingly.

Price levels are discounted in function of distance to the Mid Price (“Distance Discounting”).

Price scores get multiplied with order size to calculate a Top of Book Equivalent Score (“TOBE” in short).

Dividing the TOBE of an order by the sum total TOBE of all orders in an order book gives a % score called Market Quality Score (“MQS” in short).

A participant’s share of the orderbook snapshot reward is the MQS of one's orders. The TOBE of an orderbook is a proxy for the quality of visible liquidity of a snapshot and is compared to target values to determine the snapshot reward.

3.2 Scoring Mechanics

• Mid Price Determination: Calculated as the arithmetic mean of the best available bid and ask prices.

$$P_{\text{mid}} = \frac{P_{\text{best bid}} + P_{\text{best ask}}}{2}$$

• Distance Discounting: Orders closer to the mid-price receive a higher score, acknowledging their greater contribution to effective market liquidity. The distance from the mid-price is normalized against typical market fluctuations, which are specific to each traded asset. Price Distance and Normalized Distance (“ND”) are calculated as follows:

$$\text{Price Distance} = \left| P_{\text{mid}} - P_{\text{order}} \right|$$

$$\text{Normalized Distance} = \frac{\text{Price Distance}}{\text{Typical Distance}}$$

Price scoring uses Normalized Distance as the input to a non-linear discounting function.

$$\text{Price Score} = 0.0001 \cdot \text{ND}$$

• Score Formulation: The TOBE (Top of Book Equivalent) score for each order is calculated by multiplying the Price Score (“PS”) with the size of the order in USDC (“Q”).

The Market Quality Score (‘MQS’) for each trader is simply the sum of its TOBE scores, capped at 500’000 points per interval:

$$MQS_{trader} = max(\sum_{}^{}TOBE_{orders},500000)$$

3.3 Reward Allocation

• Daily Snapshot Analysis: Approximately 10,000 snapshots of the order book are taken daily. Each snapshot contributes equally to the total daily reward allocation and is worth 1’500’000 TOBE scores.

• Calculation of MQS: Each trader’s MQS is computed by dividing their TOBE score by the aggregate TOBE score of all participants in the snapshot. This MQS then determines the proportion of the snapshot’s reward pool allocated to the trader.

4. Terms and Conditions

4.1 Participation Criteria

All traders wishing to participate must maintain the requisite margin balance of $50,000 and ensure compliance with all trading guidelines established by Citrex Markets. Participation is deemed acceptance of all program rules as laid out in this document.

4.2 Program Modification and Termination

Citrex Markets reserves the right to modify or terminate the CLEP at its discretion. Such actions may be undertaken to preserve market integrity, comply with legal or regulatory requirements, or respond to significant market developments. Participants are responsible for regularly reviewing official communications on the platform to stay informed of any updates. While Citrex Markets may, where feasible, provide direct notifications (e.g., via email), it does not guarantee individual notice of all changes.

4.3 Compliance and Legal Obligations

Participants must adhere to all applicable laws and regulatory requirements. Failure to do so can result in disqualification from the program and forfeiture of any accrued rewards.