Understanding Automated Market Making 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.

Understanding Automated Market Making Instructions

Automated Market Making (AMM) Instructions are an advanced feature of Bullish, allowing eligible customers to directly make markets using idle assets. AMM Instructions scale to billions of dollars and AMM payments are continuously generated while the market conditions support it.

Eligible customers have the flexibility to create one or more AMM Instructions for one or more markets. Each AMM Instruction has parameters that capture the customer’s preferred trading strategy and risk profile. Such parameters include:

  • A price range for bids and offers
  • A minimum bid/offer spread
  • Optional dynamic spread adjustments

These parameters are explained in more depth in the article on creating AMM Instructions.

AMM Payments

Every time other market participants trade against the bids and offers sent by the AMM on your behalf, you will receive a portion of the AMM payments generated by those trades. This payment derives from the Taker Fee paid by the trader and the spread you chose when you created the AMM Instruction. We collate and pay the accrued amount from your open AMM Instruction(s) into your spot account every hour, and also one final time when you terminate an instruction.

Since there will often be multiple AMM Instructions from multiple customers at the same price, we prorate the payments generated by each trade according to the relative contribution of each AMM Instruction. Finally, the exchange itself applies an AMM fee.

Net AMM Payments (per AMM Instruction, per trade) =

Gross AMM Payments [of trade] x relative contribution [of AMM Instruction] x (1 - AMM fee)


  • Gross AMM Payments (per trade) = traded notional x (taker fee + 1/2 spread)

  • Spread = MAX (fixed spread, dynamic spread if applied)

  • Traded notional is the total quote amount (e.g. BTC for BTC/USDC) filled by AMM Instructions in that trade for a buy, or the total base amount (e.g. USDC for BTC/USDC) for a sell

Monitoring AMM Instructions

After submitting your AMM Instructions, you will not need to perform any other actions as the system is fully automated using the parameters supplied in the instruction. However, we do recommend that you regularly review your accounts. You may also terminate your AMM Instructions at any time.

Warning: Customers eligible for contributing to our AMM Instructions are subject to various requirements and risks.

Please read carefully our Risk Warnings for more information.

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