Market Making with perpetuals AMM Instructions

Important: AMM Instructions are high risk and only available to eligible institutional and corporate professional investors in select locations.

In Hong Kong, AMM instructions are available to institutional and qualified corporate professional investors only. Perpetuals AMM Instructions are not available in Hong Kong or to Hong Kong users.

Perpetual market AMM Instructions allow you to make markets according to the rules and parameters you set. They automate the process of creating buy and sell orders for the chosen Perpetual market. Perpetual Market instructions also aim to empower liquidity providers with an alternative way to make markets in the same way to spot market AMM Instructions, namely by buying when the price goes down and selling when the price goes up.

AMM Revenue

The calculation for Perpetual market AMM Instructions revenue is nearly identical to the spot AMM revenue calculation, except that Perpetuals uses the notional calculated in terms of the settlement currency.

Net AMM Revenue (per AMM Instruction, per trade) = Gross AMM Revenue [of trade] x relative contribution [of AMM Instruction] x (1 - AMM fee)

Where

  • Gross AMM Revenue (per trade) = traded notional x (taker fee + 1/2 spread)
  • Spread = MAX (fixed spread, dynamic spread if applied)
  • Traded notional is the total contract quantity, long or short, filled by AMM Instructions in that trade, expressed in the settlement currency (e.g. USDC in a BTC/USDC perpetual contract).
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