[{"data":1,"prerenderedAt":2599},["ShallowReactive",2],{"blog-how-to-switch-market-makers":3,"related-how-to-switch-market-makers":716},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":8,"description":9,"date":10,"author":11,"category":12,"tags":13,"keywords":18,"image":24,"readTime":25,"body":26,"_type":710,"_id":711,"_source":712,"_file":713,"_stem":714,"_extension":715},"/blog/how-to-switch-market-makers","blog",false,"","How to Switch Market Makers Without Disrupting Your Token's Liquidity","How to switch market makers step by step: when to change, how to exit the old contract, recover token loans and hand over liquidity without a gap in the order book.","2026-10-26","Fibonacci Capital","Market Making",[14,15,16,17],"market making","liquidity","market maker agreement","exchanges",[19,20,21,22,23],"how to switch market makers","change market maker crypto","replace market maker","market maker transition","terminate market maker agreement","/assets/images/blog/how-to-switch-market-makers.jpg","9 min read",{"type":27,"children":28,"toc":697},"root",[29,37,44,49,54,119,124,147,153,158,211,224,230,235,341,354,360,365,370,398,404,409,433,439,444,449,482,487,493,498,526,532,537,550,556,673,679,684],{"type":30,"tag":31,"props":32,"children":33},"element","p",{},[34],{"type":35,"value":36},"text","To switch market makers safely, run the transition as an overlap rather than a handover: sign and onboard the new market maker first, let both firms quote for a short agreed period, then wind down the old one and recover any loaned tokens and funds. The risk in a switch is not the change itself. It is the gap: days where nobody is quoting, spreads widen, depth disappears and traders notice. This guide walks through when a switch is justified, how to exit the existing agreement, and a step-by-step plan that keeps the order book continuous.",{"type":30,"tag":38,"props":39,"children":41},"h2",{"id":40},"when-switching-market-makers-is-the-right-call",[42],{"type":35,"value":43},"When Switching Market Makers Is the Right Call",{"type":30,"tag":31,"props":45,"children":46},{},[47],{"type":35,"value":48},"Switching has real cost: legal review, onboarding work, a new learning curve on your token's behaviour. Do it for structural reasons, not because of one bad week of price action.",{"type":30,"tag":31,"props":50,"children":51},{},[52],{"type":35,"value":53},"Reasonable triggers:",{"type":30,"tag":55,"props":56,"children":57},"ul",{},[58,79,89,99,109],{"type":30,"tag":59,"props":60,"children":61},"li",{},[62,68,70,77],{"type":30,"tag":63,"props":64,"children":65},"strong",{},[66],{"type":35,"value":67},"Persistent KPI misses.",{"type":35,"value":69}," Spreads and depth regularly outside the contracted ranges, measured over weeks, not hours. 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Treat this as urgent and take legal advice.",{"type":30,"tag":31,"props":120,"children":121},{},[122],{"type":35,"value":123},"Weak triggers:",{"type":30,"tag":55,"props":125,"children":126},{},[127,137],{"type":30,"tag":59,"props":128,"children":129},{},[130,135],{"type":30,"tag":63,"props":131,"children":132},{},[133],{"type":35,"value":134},"Price went down.",{"type":35,"value":136}," A market maker provides liquidity; it does not set the trend. Price decline alone is not evidence of failure.",{"type":30,"tag":59,"props":138,"children":139},{},[140,145],{"type":30,"tag":63,"props":141,"children":142},{},[143],{"type":35,"value":144},"Lower volume.",{"type":35,"value":146}," Volume depends on market interest. Depth and spread are the better measures of liquidity work.",{"type":30,"tag":38,"props":148,"children":150},{"id":149},"step-1-audit-what-you-actually-have",[151],{"type":35,"value":152},"Step 1: Audit What You Actually Have",{"type":30,"tag":31,"props":154,"children":155},{},[156],{"type":35,"value":157},"Before you talk to anyone new, document the current state. You will need it for the exit and for the new firm's onboarding.",{"type":30,"tag":55,"props":159,"children":160},{},[161,171,181,191,201],{"type":30,"tag":59,"props":162,"children":163},{},[164,169],{"type":30,"tag":63,"props":165,"children":166},{},[167],{"type":35,"value":168},"The agreement.",{"type":35,"value":170}," Term, notice period, termination clauses, exclusivity, any fees owed on exit.",{"type":30,"tag":59,"props":172,"children":173},{},[174,179],{"type":30,"tag":63,"props":175,"children":176},{},[177],{"type":35,"value":178},"Token loans.",{"type":35,"value":180}," Amounts, wallet addresses, the recall mechanism and any options attached to the loan, such as call options at a set strike.",{"type":30,"tag":59,"props":182,"children":183},{},[184,189],{"type":30,"tag":63,"props":185,"children":186},{},[187],{"type":35,"value":188},"Funds on exchange.",{"type":35,"value":190}," Which accounts hold your tokens or stablecoins and who controls them.",{"type":30,"tag":59,"props":192,"children":193},{},[194,199],{"type":30,"tag":63,"props":195,"children":196},{},[197],{"type":35,"value":198},"API keys and permissions.",{"type":35,"value":200}," Which exchange accounts the market maker trades through and whether they are yours or theirs.",{"type":30,"tag":59,"props":202,"children":203},{},[204,209],{"type":30,"tag":63,"props":205,"children":206},{},[207],{"type":35,"value":208},"Baseline metrics.",{"type":35,"value":210}," Current spread, depth at several price bands and uptime on each venue. This is the benchmark the new firm must meet or beat.",{"type":30,"tag":31,"props":212,"children":213},{},[214,216,222],{"type":35,"value":215},"If ownership of accounts or wallets is unclear, fix that first. It is the most common reason a switch becomes messy. We covered this in ",{"type":30,"tag":71,"props":217,"children":219},{"href":218},"/blog/market-maker-onboarding-mistakes-token-projects",[220],{"type":35,"value":221},"market maker onboarding mistakes",{"type":35,"value":223},".",{"type":30,"tag":38,"props":225,"children":227},{"id":226},"step-2-read-the-exit-terms-carefully",[228],{"type":35,"value":229},"Step 2: Read the Exit Terms Carefully",{"type":30,"tag":31,"props":231,"children":232},{},[233],{"type":35,"value":234},"Most market making agreements include a notice period for termination and some conditions around returning loaned tokens. 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If you are reviewing your current arrangement or planning a change, ",{"type":30,"tag":71,"props":690,"children":692},{"href":691},"/",[693],{"type":35,"value":694},"get in touch",{"type":35,"value":696}," and we can walk through your venues, current metrics and contract terms.",{"title":7,"searchDepth":698,"depth":698,"links":699},2,[700,701,702,703,704,705,706,707,708,709],{"id":40,"depth":698,"text":43},{"id":149,"depth":698,"text":152},{"id":226,"depth":698,"text":229},{"id":356,"depth":698,"text":359},{"id":400,"depth":698,"text":403},{"id":435,"depth":698,"text":438},{"id":489,"depth":698,"text":492},{"id":528,"depth":698,"text":531},{"id":552,"depth":698,"text":555},{"id":675,"depth":698,"text":678},"markdown","content:blog:how-to-switch-market-makers.md","content","blog/how-to-switch-market-makers.md","blog/how-to-switch-market-makers","md",[717,1539,2027],{"_path":718,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":719,"description":720,"date":721,"author":11,"category":12,"tags":722,"keywords":725,"image":731,"readTime":25,"body":732,"_type":710,"_id":1536,"_source":712,"_file":1537,"_stem":1538,"_extension":715},"/blog/in-house-market-making-vs-hiring-a-market-maker","In-House Market Making vs Hiring a Market Maker: Which Should Your Token Choose?","In-house market making vs hiring a market maker: compare cost, capital, risk, exchange access and control, with a decision framework for token project teams.","2026-10-25",[14,15,723,724],"market maker selection","token launch",[726,727,728,729,730],"in-house market making","hire a market maker","in-house vs outsourced market making","should a token project run its own market making","market maker for token project","/assets/images/blog/in-house-market-making-vs-hiring-a-market-maker.jpg",{"type":27,"children":733,"toc":1516},[734,739,745,752,757,810,816,821,847,860,866,1073,1078,1084,1090,1095,1101,1106,1112,1117,1123,1128,1175,1186,1192,1197,1248,1254,1259,1328,1334,1421,1427,1494,1500,1505],{"type":30,"tag":31,"props":735,"children":736},{},[737],{"type":35,"value":738},"In-house market making means your own team runs the bots, funds the inventory and manages the risk of quoting your token on exchanges. Hiring a market maker means a specialist firm does that work under a contract, using its own systems and, depending on the model, its own capital or tokens you lend it. For most token projects, hiring is the better choice at launch: the fixed costs of a competent desk are the same whether it supports one asset or fifty, and the failure modes of a first-time in-house desk are expensive and public. In-house makes sense in a narrower set of cases, mostly for teams with existing trading talent, a single venue to cover, or a specific need for control. This comparison walks through the trade-offs and ends with a decision framework.",{"type":30,"tag":38,"props":740,"children":742},{"id":741},"what-each-option-actually-involves",[743],{"type":35,"value":744},"What Each Option Actually Involves",{"type":30,"tag":746,"props":747,"children":749},"h3",{"id":748},"running-market-making-in-house",[750],{"type":35,"value":751},"Running market making in-house",{"type":30,"tag":31,"props":753,"children":754},{},[755],{"type":35,"value":756},"An in-house setup is more than a bot. To quote continuously and safely you need:",{"type":30,"tag":55,"props":758,"children":759},{},[760,770,780,790,800],{"type":30,"tag":59,"props":761,"children":762},{},[763,768],{"type":30,"tag":63,"props":764,"children":765},{},[766],{"type":35,"value":767},"Trading infrastructure",{"type":35,"value":769},": exchange connectivity, order management, real-time inventory tracking, kill switches and monitoring.",{"type":30,"tag":59,"props":771,"children":772},{},[773,778],{"type":30,"tag":63,"props":774,"children":775},{},[776],{"type":35,"value":777},"Strategy and parameters",{"type":35,"value":779},": spread targets, depth per level, inventory limits, how quotes react to volatility and to moves on other venues.",{"type":30,"tag":59,"props":781,"children":782},{},[783,788],{"type":30,"tag":63,"props":784,"children":785},{},[786],{"type":35,"value":787},"Capital",{"type":35,"value":789},": both your token and the quote asset (usually stablecoins) on every venue you cover, sized to absorb flow without running out.",{"type":30,"tag":59,"props":791,"children":792},{},[793,798],{"type":30,"tag":63,"props":794,"children":795},{},[796],{"type":35,"value":797},"People",{"type":35,"value":799},": someone accountable for the desk at all hours, because markets do not close and exchange incidents rarely happen during office time.",{"type":30,"tag":59,"props":801,"children":802},{},[803,808],{"type":30,"tag":63,"props":804,"children":805},{},[806],{"type":35,"value":807},"Controls",{"type":35,"value":809},": who can move funds, how API keys are scoped, how losses are reported and when quoting stops.",{"type":30,"tag":746,"props":811,"children":813},{"id":812},"hiring-a-market-maker",[814],{"type":35,"value":815},"Hiring a market maker",{"type":30,"tag":31,"props":817,"children":818},{},[819],{"type":35,"value":820},"A hired market maker brings its own infrastructure, strategy team and exchange relationships. The project usually provides one of two things:",{"type":30,"tag":55,"props":822,"children":823},{},[824,836],{"type":30,"tag":59,"props":825,"children":826},{},[827,829,834],{"type":35,"value":828},"A ",{"type":30,"tag":63,"props":830,"children":831},{},[832],{"type":35,"value":833},"token loan",{"type":35,"value":835}," with call options (the loan/option model), where the firm borrows tokens, quotes with them and may buy them at agreed strike prices later.",{"type":30,"tag":59,"props":837,"children":838},{},[839,840,845],{"type":35,"value":828},{"type":30,"tag":63,"props":841,"children":842},{},[843],{"type":35,"value":844},"retainer",{"type":35,"value":846},", where the project pays a fee and often provides both tokens and quote capital, and the firm operates them under agreed KPIs.",{"type":30,"tag":31,"props":848,"children":849},{},[850,852,858],{"type":35,"value":851},"The models and their trade-offs are covered in detail in ",{"type":30,"tag":71,"props":853,"children":855},{"href":854},"/blog/crypto-market-making-fees-models",[856],{"type":35,"value":857},"crypto market making fee models",{"type":35,"value":859},". What matters here is that in both cases you are buying operational capability, not just a bot.",{"type":30,"tag":38,"props":861,"children":863},{"id":862},"side-by-side-comparison",[864],{"type":35,"value":865},"Side-by-Side Comparison",{"type":30,"tag":236,"props":867,"children":868},{},[869,890],{"type":30,"tag":240,"props":870,"children":871},{},[872],{"type":30,"tag":244,"props":873,"children":874},{},[875,880,885],{"type":30,"tag":248,"props":876,"children":877},{},[878],{"type":35,"value":879},"Factor",{"type":30,"tag":248,"props":881,"children":882},{},[883],{"type":35,"value":884},"In-house",{"type":30,"tag":248,"props":886,"children":887},{},[888],{"type":35,"value":889},"Hired market maker",{"type":30,"tag":259,"props":891,"children":892},{},[893,911,929,947,965,983,1001,1019,1037,1055],{"type":30,"tag":244,"props":894,"children":895},{},[896,901,906],{"type":30,"tag":266,"props":897,"children":898},{},[899],{"type":35,"value":900},"Upfront cost",{"type":30,"tag":266,"props":902,"children":903},{},[904],{"type":35,"value":905},"Engineering build or software licences, plus hiring",{"type":30,"tag":266,"props":907,"children":908},{},[909],{"type":35,"value":910},"Contract setup; 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internal conflicts remain",{"type":30,"tag":266,"props":1033,"children":1034},{},[1035],{"type":35,"value":1036},"Possible if option terms reward the firm for a falling price",{"type":30,"tag":244,"props":1038,"children":1039},{},[1040,1045,1050],{"type":30,"tag":266,"props":1041,"children":1042},{},[1043],{"type":35,"value":1044},"Key-person risk",{"type":30,"tag":266,"props":1046,"children":1047},{},[1048],{"type":35,"value":1049},"High; a small team is a single point of failure",{"type":30,"tag":266,"props":1051,"children":1052},{},[1053],{"type":35,"value":1054},"Spread across the firm's desk",{"type":30,"tag":244,"props":1056,"children":1057},{},[1058,1063,1068],{"type":30,"tag":266,"props":1059,"children":1060},{},[1061],{"type":35,"value":1062},"Regulatory exposure",{"type":30,"tag":266,"props":1064,"children":1065},{},[1066],{"type":35,"value":1067},"The project itself is trading its own token",{"type":30,"tag":266,"props":1069,"children":1070},{},[1071],{"type":35,"value":1072},"The firm trades; the project still owns the arrangement",{"type":30,"tag":31,"props":1074,"children":1075},{},[1076],{"type":35,"value":1077},"None of these rows is decisive on its own. The weighting depends on your situation, which is where the framework below helps.",{"type":30,"tag":38,"props":1079,"children":1081},{"id":1080},"where-in-house-looks-better-than-it-is",[1082],{"type":35,"value":1083},"Where In-House Looks Better Than It Is",{"type":30,"tag":746,"props":1085,"children":1087},{"id":1086},"we-will-save-the-fee",[1088],{"type":35,"value":1089},"\"We will save the fee\"",{"type":30,"tag":31,"props":1091,"children":1092},{},[1093],{"type":35,"value":1094},"The fee is visible; the cost of running a desk is not. Engineering time, monitoring, inventory that sits idle, and the trading losses of an inexperienced desk are real costs that rarely make it into the comparison spreadsheet. A single stale order left on the book during a fast move can cost more than months of a retainer.",{"type":30,"tag":746,"props":1096,"children":1098},{"id":1097},"we-know-our-token-better-than-anyone",[1099],{"type":35,"value":1100},"\"We know our token better than anyone\"",{"type":30,"tag":31,"props":1102,"children":1103},{},[1104],{"type":35,"value":1105},"Knowing the token is not the same as knowing order flow. A market maker's edge comes from managing inventory risk, reacting to cross-venue price moves and detecting toxic flow from arbitrage bots. Those skills transfer across tokens, which is exactly why specialists exist.",{"type":30,"tag":746,"props":1107,"children":1109},{"id":1108},"we-will-have-full-control",[1110],{"type":35,"value":1111},"\"We will have full control\"",{"type":30,"tag":31,"props":1113,"children":1114},{},[1115],{"type":35,"value":1116},"You will, and that includes full responsibility. If your desk accidentally creates trades between your own accounts, or quotes in a way that looks like price support, the project's name is on it. Make sure any in-house setup has controls that prevent self-matching.",{"type":30,"tag":38,"props":1118,"children":1120},{"id":1119},"where-hiring-has-real-downsides",[1121],{"type":35,"value":1122},"Where Hiring Has Real Downsides",{"type":30,"tag":31,"props":1124,"children":1125},{},[1126],{"type":35,"value":1127},"Outsourcing is not automatically safe. The common problems:",{"type":30,"tag":55,"props":1129,"children":1130},{},[1131,1140,1149,1165],{"type":30,"tag":59,"props":1132,"children":1133},{},[1134,1138],{"type":30,"tag":63,"props":1135,"children":1136},{},[1137],{"type":35,"value":96},{"type":35,"value":1139}," Under loan/option deals, a firm can profit if the token falls and it returns borrowed tokens bought back cheaply. Strike structure and reporting terms matter.",{"type":30,"tag":59,"props":1141,"children":1142},{},[1143,1147],{"type":30,"tag":63,"props":1144,"children":1145},{},[1146],{"type":35,"value":86},{"type":35,"value":1148}," If you only see a monthly summary, you cannot tell whether KPIs were met. Insist on venue-level data.",{"type":30,"tag":59,"props":1150,"children":1151},{},[1152,1157,1159,1164],{"type":30,"tag":63,"props":1153,"children":1154},{},[1155],{"type":35,"value":1156},"Weak KPIs.",{"type":35,"value":1158}," Volume targets alone are easy to hit and say little about liquidity quality. Spread, depth within a band and uptime are better measures; see ",{"type":30,"tag":71,"props":1160,"children":1161},{"href":73},[1162],{"type":35,"value":1163},"how to evaluate market maker performance",{"type":35,"value":223},{"type":30,"tag":59,"props":1166,"children":1167},{},[1168,1173],{"type":30,"tag":63,"props":1169,"children":1170},{},[1171],{"type":35,"value":1172},"Lock-in.",{"type":35,"value":1174}," Long notice periods and unclear token return terms make it hard to leave a provider that underperforms.",{"type":30,"tag":31,"props":1176,"children":1177},{},[1178,1180,1184],{"type":35,"value":1179},"All of these are contract problems, which means they are negotiable before signing. A ",{"type":30,"tag":71,"props":1181,"children":1182},{"href":348},[1183],{"type":35,"value":351},{"type":35,"value":1185}," is the right place to start.",{"type":30,"tag":38,"props":1187,"children":1189},{"id":1188},"hybrid-models",[1190],{"type":35,"value":1191},"Hybrid Models",{"type":30,"tag":31,"props":1193,"children":1194},{},[1195],{"type":35,"value":1196},"The choice is not always binary. Common hybrids include:",{"type":30,"tag":55,"props":1198,"children":1199},{},[1200,1218,1228,1238],{"type":30,"tag":59,"props":1201,"children":1202},{},[1203,1208,1210,1216],{"type":30,"tag":63,"props":1204,"children":1205},{},[1206],{"type":35,"value":1207},"Hired CEX coverage, in-house DEX management.",{"type":35,"value":1209}," The project manages its own liquidity pool positions on-chain (often protocol-owned liquidity) while a firm covers centralized exchange order books. This works well when your DEX setup is simple; if you are still choosing a venue, our list of the ",{"type":30,"tag":71,"props":1211,"children":1213},{"href":1212},"/blog/best-dex-to-launch-a-token",[1214],{"type":35,"value":1215},"best DEXs to launch a token",{"type":35,"value":1217}," covers the trade-offs.",{"type":30,"tag":59,"props":1219,"children":1220},{},[1221,1226],{"type":30,"tag":63,"props":1222,"children":1223},{},[1224],{"type":35,"value":1225},"Software licence plus advisory.",{"type":35,"value":1227}," The team runs licensed market making software with external guidance on parameters. This gives control but keeps most of the operational risk in-house.",{"type":30,"tag":59,"props":1229,"children":1230},{},[1231,1236],{"type":30,"tag":63,"props":1232,"children":1233},{},[1234],{"type":35,"value":1235},"Start outsourced, build later.",{"type":35,"value":1237}," Use a market maker through launch and the first unlock cycles, then reassess once the token has stable volume and the team has trading talent.",{"type":30,"tag":59,"props":1239,"children":1240},{},[1241,1246],{"type":30,"tag":63,"props":1242,"children":1243},{},[1244],{"type":35,"value":1245},"Two providers.",{"type":35,"value":1247}," Some projects split venues between two firms to compare performance and avoid single-provider dependence. This needs clear venue allocation to avoid the firms trading against each other.",{"type":30,"tag":38,"props":1249,"children":1251},{"id":1250},"decision-framework-which-should-you-pick",[1252],{"type":35,"value":1253},"Decision Framework: Which Should You Pick?",{"type":30,"tag":31,"props":1255,"children":1256},{},[1257],{"type":35,"value":1258},"Work through these questions in order. If you answer \"no\" to any of the first three, hire.",{"type":30,"tag":410,"props":1260,"children":1261},{},[1262,1272,1280,1288,1298,1308,1318],{"type":30,"tag":59,"props":1263,"children":1264},{},[1265,1270],{"type":30,"tag":63,"props":1266,"children":1267},{},[1268],{"type":35,"value":1269},"Do you already employ people who have run a trading desk?",{"type":35,"value":1271}," Not traders in general, but people who have managed inventory risk and exchange connectivity in production.",{"type":30,"tag":59,"props":1273,"children":1274},{},[1275],{"type":30,"tag":63,"props":1276,"children":1277},{},[1278],{"type":35,"value":1279},"Can you fund full inventory on every venue you need to cover, and absorb trading losses while you learn?",{"type":30,"tag":59,"props":1281,"children":1282},{},[1283],{"type":30,"tag":63,"props":1284,"children":1285},{},[1286],{"type":35,"value":1287},"Can you staff monitoring around the clock, including weekends and exchange incidents?",{"type":30,"tag":59,"props":1289,"children":1290},{},[1291,1296],{"type":30,"tag":63,"props":1292,"children":1293},{},[1294],{"type":35,"value":1295},"How many venues do you need?",{"type":35,"value":1297}," One DEX pool is manageable in-house. Several centralized exchanges with cross-venue arbitrage is a different problem.",{"type":30,"tag":59,"props":1299,"children":1300},{},[1301,1306],{"type":30,"tag":63,"props":1302,"children":1303},{},[1304],{"type":35,"value":1305},"How close is your launch?",{"type":35,"value":1307}," If listing is weeks away, building a desk is not realistic. Launch with a provider.",{"type":30,"tag":59,"props":1309,"children":1310},{},[1311,1316],{"type":30,"tag":63,"props":1312,"children":1313},{},[1314],{"type":35,"value":1315},"What do your exchanges expect?",{"type":35,"value":1317}," Some exchanges ask for a named market maker as part of the listing process.",{"type":30,"tag":59,"props":1319,"children":1320},{},[1321,1326],{"type":30,"tag":63,"props":1322,"children":1323},{},[1324],{"type":35,"value":1325},"How sensitive are you to the regulatory view of a project trading its own token?",{"type":35,"value":1327}," Get legal advice either way; the answer influences structure, not just cost.",{"type":30,"tag":746,"props":1329,"children":1331},{"id":1330},"quick-verdicts",[1332],{"type":35,"value":1333},"Quick 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proposals compared on KPIs, reporting and token return terms",{"type":30,"tag":59,"props":1486,"children":1488},{"className":1487},[564],[1489,1492],{"type":30,"tag":567,"props":1490,"children":1491},{"disabled":569,"type":570},[],{"type":35,"value":1493}," Exit plan defined for either path",{"type":30,"tag":38,"props":1495,"children":1497},{"id":1496},"the-bottom-line",[1498],{"type":35,"value":1499},"The Bottom Line",{"type":30,"tag":31,"props":1501,"children":1502},{},[1503],{"type":35,"value":1504},"In-house market making is a business in its own right, and most token teams are building a different business. Hiring a specialist usually gets you better liquidity sooner, at a cost that is easier to predict, as long as the contract aligns incentives and gives you the data to check the work. In-house becomes realistic later, when volume is stable and you have people who have done it before. Fibonacci Capital works with token teams on both the hired and hybrid models, and the first conversation is usually about which venues and KPIs actually matter for your token.",{"type":30,"tag":31,"props":1506,"children":1507},{},[1508,1510,1515],{"type":35,"value":1509},"If you want to compare the options for your own launch, ",{"type":30,"tag":71,"props":1511,"children":1512},{"href":691},[1513],{"type":35,"value":1514},"get in touch with Fibonacci Capital",{"type":35,"value":223},{"title":7,"searchDepth":698,"depth":698,"links":1517},[1518,1523,1524,1529,1530,1531,1534,1535],{"id":741,"depth":698,"text":744,"children":1519},[1520,1522],{"id":748,"depth":1521,"text":751},3,{"id":812,"depth":1521,"text":815},{"id":862,"depth":698,"text":865},{"id":1080,"depth":698,"text":1083,"children":1525},[1526,1527,1528],{"id":1086,"depth":1521,"text":1089},{"id":1097,"depth":1521,"text":1100},{"id":1108,"depth":1521,"text":1111},{"id":1119,"depth":698,"text":1122},{"id":1188,"depth":698,"text":1191},{"id":1250,"depth":698,"text":1253,"children":1532},[1533],{"id":1330,"depth":1521,"text":1333},{"id":1423,"depth":698,"text":1426},{"id":1496,"depth":698,"text":1499},"content:blog:in-house-market-making-vs-hiring-a-market-maker.md","blog/in-house-market-making-vs-hiring-a-market-maker.md","blog/in-house-market-making-vs-hiring-a-market-maker",{"_path":218,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":1540,"description":1541,"date":1542,"author":11,"category":12,"tags":1543,"keywords":1547,"image":1553,"readTime":1554,"body":1555,"_type":710,"_id":2024,"_source":712,"_file":2025,"_stem":2026,"_extension":715},"Market Maker Onboarding: 8 Mistakes Token Projects Make in the First 30 Days","Market maker onboarding mistakes token projects make in the first 30 days, from wallets and API keys to KPIs and reporting, with the fix for each one.","2026-10-20",[14,1544,1545,724,1546],"onboarding","market maker","kpis",[1548,1549,1550,1551,1552],"market maker onboarding","onboarding a crypto market maker","market making mistakes","market maker kpis","market maker api keys setup","/assets/images/blog/market-maker-onboarding-mistakes-token-projects.jpg","8 min read",{"type":27,"children":1556,"toc":2010},[1557,1562,1580,1586,1591,1607,1613,1618,1635,1641,1646,1663,1669,1674,1690,1696,1701,1710,1716,1721,1746,1752,1757,1773,1779,1784,1793,1799,1804,1809,1815,1902,1908,1993,1999],{"type":30,"tag":31,"props":1558,"children":1559},{},[1560],{"type":35,"value":1561},"The first 30 days with a market maker decide whether the relationship runs smoothly or turns into a dispute. The most common market maker onboarding mistakes are not about choosing the wrong firm; they are operational: sending tokens before the terms are final, mishandling API keys and wallets, leaving KPIs vague, and failing to agree a reporting routine. Each one is cheap to fix before launch and expensive to fix after. This article lists eight mistakes and the fix for each, so your team enters the engagement with a clear setup.",{"type":30,"tag":31,"props":1563,"children":1564},{},[1565,1567,1573,1575,1579],{"type":35,"value":1566},"It assumes you have already selected a provider. If not, start with ",{"type":30,"tag":71,"props":1568,"children":1570},{"href":1569},"/blog/how-to-choose-crypto-liquidity-provider",[1571],{"type":35,"value":1572},"how to choose a crypto liquidity provider",{"type":35,"value":1574}," and the ",{"type":30,"tag":71,"props":1576,"children":1577},{"href":348},[1578],{"type":35,"value":351},{"type":35,"value":223},{"type":30,"tag":38,"props":1581,"children":1583},{"id":1582},"mistake-1-sending-tokens-before-the-agreement-is-final",[1584],{"type":35,"value":1585},"Mistake 1: Sending Tokens Before the Agreement Is Final",{"type":30,"tag":31,"props":1587,"children":1588},{},[1589],{"type":35,"value":1590},"Teams under launch pressure sometimes transfer inventory while the contract is still being negotiated. Once tokens sit in the provider's wallet, your negotiating leverage on the open terms drops sharply.",{"type":30,"tag":31,"props":1592,"children":1593},{},[1594,1599,1601,1606],{"type":30,"tag":63,"props":1595,"children":1596},{},[1597],{"type":35,"value":1598},"Fix:",{"type":35,"value":1600}," treat the signed agreement, including loan terms, return conditions and option strikes if used, as the gate for any transfer. Agree the wallet addresses in writing, and send a small test transaction first. The models themselves are explained in ",{"type":30,"tag":71,"props":1602,"children":1603},{"href":854},[1604],{"type":35,"value":1605},"market making fee models",{"type":35,"value":223},{"type":30,"tag":38,"props":1608,"children":1610},{"id":1609},"mistake-2-unclear-ownership-of-wallets-and-accounts",[1611],{"type":35,"value":1612},"Mistake 2: Unclear Ownership of Wallets and Accounts",{"type":30,"tag":31,"props":1614,"children":1615},{},[1616],{"type":35,"value":1617},"Who controls which wallet, which exchange account and which API key? Projects often discover during a dispute that nobody wrote this down. Some teams also lend tokens to an address they cannot later prove belongs to the provider.",{"type":30,"tag":31,"props":1619,"children":1620},{},[1621,1625,1627,1633],{"type":30,"tag":63,"props":1622,"children":1623},{},[1624],{"type":35,"value":1598},{"type":35,"value":1626}," keep a one-page register listing every wallet, exchange sub-account and API key: owner, purpose, permissions and rotation date. Hold your treasury in a multisig and keep it separate from the lending wallets. ",{"type":30,"tag":71,"props":1628,"children":1630},{"href":1629},"/blog/crypto-custody-solutions-for-token-teams",[1631],{"type":35,"value":1632},"Custody options for token teams",{"type":35,"value":1634}," covers the setup.",{"type":30,"tag":38,"props":1636,"children":1638},{"id":1637},"mistake-3-over-permissioned-api-keys",[1639],{"type":35,"value":1640},"Mistake 3: Over-Permissioned API Keys",{"type":30,"tag":31,"props":1642,"children":1643},{},[1644],{"type":35,"value":1645},"An API key with withdrawal rights is a liability. Market making needs trading access, not the ability to move funds off the exchange.",{"type":30,"tag":31,"props":1647,"children":1648},{},[1649,1653,1655,1661],{"type":30,"tag":63,"props":1650,"children":1651},{},[1652],{"type":35,"value":1598},{"type":35,"value":1654}," whichever side creates the keys, make sure they are trade-only, with withdrawal disabled and IP whitelisting enabled where the exchange supports it. If your exchange accounts are yours and the provider trades through them, confirm who can change permissions. ",{"type":30,"tag":71,"props":1656,"children":1658},{"href":1657},"/blog/exchange-api-integration-market-making",[1659],{"type":35,"value":1660},"Exchange API integration for market making",{"type":35,"value":1662}," explains what the integration requires.",{"type":30,"tag":38,"props":1664,"children":1666},{"id":1665},"mistake-4-vague-kpis",[1667],{"type":35,"value":1668},"Mistake 4: Vague KPIs",{"type":30,"tag":31,"props":1670,"children":1671},{},[1672],{"type":35,"value":1673},"\"Provide healthy liquidity\" is not a measurable obligation. Without numbers, you cannot tell whether the provider is meeting expectations, and neither side can argue from the same facts.",{"type":30,"tag":31,"props":1675,"children":1676},{},[1677,1681,1683,1688],{"type":30,"tag":63,"props":1678,"children":1679},{},[1680],{"type":35,"value":1598},{"type":35,"value":1682}," define obligations in measurable terms: maximum spread, minimum depth within a stated price band, minimum uptime, and per-venue requirements. Specify how each is measured, over what window and what counts as an exception such as exchange downtime or extreme volatility. ",{"type":30,"tag":71,"props":1684,"children":1685},{"href":73},[1686],{"type":35,"value":1687},"How to evaluate market maker performance",{"type":35,"value":1689}," shows what to track and how to read it.",{"type":30,"tag":38,"props":1691,"children":1693},{"id":1692},"mistake-5-no-agreed-reporting-routine",[1694],{"type":35,"value":1695},"Mistake 5: No Agreed Reporting Routine",{"type":30,"tag":31,"props":1697,"children":1698},{},[1699],{"type":35,"value":1700},"Some projects get a dashboard login and nothing else. Others get a weekly PDF nobody opens. Both leave problems undiscovered until the quarter ends.",{"type":30,"tag":31,"props":1702,"children":1703},{},[1704,1708],{"type":30,"tag":63,"props":1705,"children":1706},{},[1707],{"type":35,"value":1598},{"type":35,"value":1709}," set a fixed cadence: daily access to live metrics, a weekly summary covering spread, depth, volume and inventory, and a monthly review call. Agree the data source in advance, preferably something you can verify against exchange data and not only the provider's own numbers.",{"type":30,"tag":38,"props":1711,"children":1713},{"id":1712},"mistake-6-treating-volume-as-the-goal",[1714],{"type":35,"value":1715},"Mistake 6: Treating Volume as the Goal",{"type":30,"tag":31,"props":1717,"children":1718},{},[1719],{"type":35,"value":1720},"Founders often ask for volume targets because volume is visible and easy to quote. But volume is a weak measure of liquidity, and chasing it can push providers toward activity that looks like wash trading. Venues and data aggregators are alert to it, and the reputational damage is yours.",{"type":30,"tag":31,"props":1722,"children":1723},{},[1724,1728,1730,1736,1738,1744],{"type":30,"tag":63,"props":1725,"children":1726},{},[1727],{"type":35,"value":1598},{"type":35,"value":1729}," anchor to spread and depth, not turnover. If you do set a volume expectation, tie it to organic activity and make clear that manufactured volume is out of bounds. Read ",{"type":30,"tag":71,"props":1731,"children":1733},{"href":1732},"/blog/trading-volume-vs-liquidity",[1734],{"type":35,"value":1735},"trading volume versus liquidity",{"type":35,"value":1737}," and ",{"type":30,"tag":71,"props":1739,"children":1741},{"href":1740},"/blog/what-is-wash-trading-crypto",[1742],{"type":35,"value":1743},"what wash trading is",{"type":35,"value":1745}," before you set targets.",{"type":30,"tag":38,"props":1747,"children":1749},{"id":1748},"mistake-7-ignoring-inventory-and-unlock-interaction",[1750],{"type":35,"value":1751},"Mistake 7: Ignoring Inventory and Unlock Interaction",{"type":30,"tag":31,"props":1753,"children":1754},{},[1755],{"type":35,"value":1756},"Your provider holds a mix of tokens and stable assets. If a large investor unlock lands in the same week as a thin order book, the provider's risk changes and quoting behaviour may change with it. Teams that never share their unlock calendar are surprised when spreads widen.",{"type":30,"tag":31,"props":1758,"children":1759},{},[1760,1764,1766,1772],{"type":30,"tag":63,"props":1761,"children":1762},{},[1763],{"type":35,"value":1598},{"type":35,"value":1765}," share the vesting and unlock calendar, planned announcements and listings with the provider in advance, under confidentiality. Agree how inventory is topped up or reduced, and who approves changes. Allocation of launch liquidity should already be part of your supply plan, as discussed in our ",{"type":30,"tag":71,"props":1767,"children":1769},{"href":1768},"/blog/token-allocation-breakdown-team-investors-community",[1770],{"type":35,"value":1771},"token allocation breakdown",{"type":35,"value":223},{"type":30,"tag":38,"props":1774,"children":1776},{"id":1775},"mistake-8-no-plan-for-exit",[1777],{"type":35,"value":1778},"Mistake 8: No Plan for Exit",{"type":30,"tag":31,"props":1780,"children":1781},{},[1782],{"type":35,"value":1783},"Contracts end, relationships change, and exchanges delist. Few teams think through how the engagement unwinds until they need to.",{"type":30,"tag":31,"props":1785,"children":1786},{},[1787,1791],{"type":30,"tag":63,"props":1788,"children":1789},{},[1790],{"type":35,"value":1598},{"type":35,"value":1792}," agree termination notice, a wind-down period for orders, return of loaned inventory by a stated date, treatment of any options and a clear process for handing over data. Settling this on day one costs a few lines in the contract. Settling it during a disagreement costs far more.",{"type":30,"tag":38,"props":1794,"children":1796},{"id":1795},"who-should-own-onboarding-internally",[1797],{"type":35,"value":1798},"Who Should Own Onboarding Internally",{"type":30,"tag":31,"props":1800,"children":1801},{},[1802],{"type":35,"value":1803},"Many onboarding problems trace back to a gap in ownership: the founder signs the contract, the engineer sets up keys, and finance tracks the inventory, yet nobody owns the whole picture. Name one person as the day-to-day contact for the provider, with a deputy for escalations. That person keeps the register from Mistake 2, reviews the weekly report, and logs every parameter change with the date and reason. When a question comes up three months later, such as why spreads widened in a particular week, the log gives you facts to work from, not recollections.",{"type":30,"tag":31,"props":1805,"children":1806},{},[1807],{"type":35,"value":1808},"It also helps to agree how changes are requested. A message in a chat group that says \"tighten the spread\" is not a change process. Decide whether parameter changes need written confirmation, who on your side can approve them, and how quickly the provider should acknowledge them. Small habits like this keep the relationship professional and make any later review of performance straightforward for both sides.",{"type":30,"tag":38,"props":1810,"children":1812},{"id":1811},"the-30-day-onboarding-timeline",[1813],{"type":35,"value":1814},"The 30-Day Onboarding Timeline",{"type":30,"tag":236,"props":1816,"children":1817},{},[1818,1834],{"type":30,"tag":240,"props":1819,"children":1820},{},[1821],{"type":30,"tag":244,"props":1822,"children":1823},{},[1824,1829],{"type":30,"tag":248,"props":1825,"children":1826},{},[1827],{"type":35,"value":1828},"Period",{"type":30,"tag":248,"props":1830,"children":1831},{},[1832],{"type":35,"value":1833},"What should happen",{"type":30,"tag":259,"props":1835,"children":1836},{},[1837,1850,1863,1876,1889],{"type":30,"tag":244,"props":1838,"children":1839},{},[1840,1845],{"type":30,"tag":266,"props":1841,"children":1842},{},[1843],{"type":35,"value":1844},"Before day 1",{"type":30,"tag":266,"props":1846,"children":1847},{},[1848],{"type":35,"value":1849},"Agreement signed; wallet and account register complete; test transfer done",{"type":30,"tag":244,"props":1851,"children":1852},{},[1853,1858],{"type":30,"tag":266,"props":1854,"children":1855},{},[1856],{"type":35,"value":1857},"Week 1",{"type":30,"tag":266,"props":1859,"children":1860},{},[1861],{"type":35,"value":1862},"API keys created trade-only; connectivity tested; KPI definitions confirmed; reporting access live",{"type":30,"tag":244,"props":1864,"children":1865},{},[1866,1871],{"type":30,"tag":266,"props":1867,"children":1868},{},[1869],{"type":35,"value":1870},"Week 2",{"type":30,"tag":266,"props":1872,"children":1873},{},[1874],{"type":35,"value":1875},"Inventory transferred in agreed tranches; quoting begins on the first venue; spread and depth checked against targets",{"type":30,"tag":244,"props":1877,"children":1878},{},[1879,1884],{"type":30,"tag":266,"props":1880,"children":1881},{},[1882],{"type":35,"value":1883},"Week 3",{"type":30,"tag":266,"props":1885,"children":1886},{},[1887],{"type":35,"value":1888},"Additional venues added; first weekly report reviewed; unlock calendar shared",{"type":30,"tag":244,"props":1890,"children":1891},{},[1892,1897],{"type":30,"tag":266,"props":1893,"children":1894},{},[1895],{"type":35,"value":1896},"Week 4",{"type":30,"tag":266,"props":1898,"children":1899},{},[1900],{"type":35,"value":1901},"Month-one review: KPI results, exceptions, adjustments to parameters; decide on scaling or changes",{"type":30,"tag":38,"props":1903,"children":1905},{"id":1904},"onboarding-checklist",[1906],{"type":35,"value":1907},"Onboarding Checklist",{"type":30,"tag":55,"props":1909,"children":1911},{"className":1910},[559],[1912,1921,1930,1939,1948,1957,1966,1975,1984],{"type":30,"tag":59,"props":1913,"children":1915},{"className":1914},[564],[1916,1919],{"type":30,"tag":567,"props":1917,"children":1918},{"disabled":569,"type":570},[],{"type":35,"value":1920}," Signed agreement before any token transfer",{"type":30,"tag":59,"props":1922,"children":1924},{"className":1923},[564],[1925,1928],{"type":30,"tag":567,"props":1926,"children":1927},{"disabled":569,"type":570},[],{"type":35,"value":1929}," Wallet, account and API key register written and shared internally",{"type":30,"tag":59,"props":1931,"children":1933},{"className":1932},[564],[1934,1937],{"type":30,"tag":567,"props":1935,"children":1936},{"disabled":569,"type":570},[],{"type":35,"value":1938}," Treasury in multisig; lending wallets separated",{"type":30,"tag":59,"props":1940,"children":1942},{"className":1941},[564],[1943,1946],{"type":30,"tag":567,"props":1944,"children":1945},{"disabled":569,"type":570},[],{"type":35,"value":1947}," API keys trade-only, withdrawals off, IP whitelist on",{"type":30,"tag":59,"props":1949,"children":1951},{"className":1950},[564],[1952,1955],{"type":30,"tag":567,"props":1953,"children":1954},{"disabled":569,"type":570},[],{"type":35,"value":1956}," KPIs defined with measurement method and exceptions",{"type":30,"tag":59,"props":1958,"children":1960},{"className":1959},[564],[1961,1964],{"type":30,"tag":567,"props":1962,"children":1963},{"disabled":569,"type":570},[],{"type":35,"value":1965}," Reporting cadence and data source agreed",{"type":30,"tag":59,"props":1967,"children":1969},{"className":1968},[564],[1970,1973],{"type":30,"tag":567,"props":1971,"children":1972},{"disabled":569,"type":570},[],{"type":35,"value":1974}," Unlock calendar and announcement schedule shared in confidence",{"type":30,"tag":59,"props":1976,"children":1978},{"className":1977},[564],[1979,1982],{"type":30,"tag":567,"props":1980,"children":1981},{"disabled":569,"type":570},[],{"type":35,"value":1983}," Inventory top-up and reduction process agreed",{"type":30,"tag":59,"props":1985,"children":1987},{"className":1986},[564],[1988,1991],{"type":30,"tag":567,"props":1989,"children":1990},{"disabled":569,"type":570},[],{"type":35,"value":1992}," Exit, return and data handover terms written down",{"type":30,"tag":38,"props":1994,"children":1996},{"id":1995},"good-onboarding-is-quiet",[1997],{"type":35,"value":1998},"Good Onboarding Is Quiet",{"type":30,"tag":31,"props":2000,"children":2001},{},[2002,2004,2009],{"type":35,"value":2003},"When onboarding is done well, nothing dramatic happens: quotes appear, spreads tighten, reports arrive on time, and both sides know what to expect. The goal is a working routine that survives a volatile week, not a perfect launch day. At Fibonacci Capital we run structured onboarding for every engagement so teams know the setup, the metrics and the escalation path from the start. If you are about to bring on a market maker or want to audit your current setup, ",{"type":30,"tag":71,"props":2005,"children":2006},{"href":691},[2007],{"type":35,"value":2008},"get in touch with our team",{"type":35,"value":223},{"title":7,"searchDepth":698,"depth":698,"links":2011},[2012,2013,2014,2015,2016,2017,2018,2019,2020,2021,2022,2023],{"id":1582,"depth":698,"text":1585},{"id":1609,"depth":698,"text":1612},{"id":1637,"depth":698,"text":1640},{"id":1665,"depth":698,"text":1668},{"id":1692,"depth":698,"text":1695},{"id":1712,"depth":698,"text":1715},{"id":1748,"depth":698,"text":1751},{"id":1775,"depth":698,"text":1778},{"id":1795,"depth":698,"text":1798},{"id":1811,"depth":698,"text":1814},{"id":1904,"depth":698,"text":1907},{"id":1995,"depth":698,"text":1998},"content:blog:market-maker-onboarding-mistakes-token-projects.md","blog/market-maker-onboarding-mistakes-token-projects.md","blog/market-maker-onboarding-mistakes-token-projects",{"_path":348,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"title":2028,"description":2029,"date":2030,"author":11,"category":12,"tags":2031,"keywords":2034,"image":2038,"readTime":1554,"body":2039,"_type":710,"_id":2596,"_source":712,"_file":2597,"_stem":2598,"_extension":715},"Market Maker Agreement Checklist: 12 Terms to Check Before You Sign","Market maker agreement checklist for token teams: the 12 clauses to review before signing, from quoting obligations and loan terms to exit rights and red flags.","2026-10-11",[16,2032,724,2033],"market making contract","due diligence",[16,2035,351,2036,2037],"market making contract terms","token loan market maker","market maker contract red flags","/assets/images/blog/market-maker-agreement-checklist.jpg",{"type":27,"children":2040,"toc":2574},[2041,2046,2051,2057,2068,2074,2080,2085,2091,2096,2119,2138,2144,2155,2161,2166,2189,2194,2200,2205,2223,2228,2234,2244,2250,2260,2266,2271,2277,2282,2288,2293,2299,2311,2317,2322,2328,2462,2468,2498,2504,2509,2515,2558,2564],{"type":30,"tag":31,"props":2042,"children":2043},{},[2044],{"type":35,"value":2045},"A market maker agreement should define five things clearly: what the market maker must quote (spread, depth, uptime), what assets it receives from you and on what terms, how it is paid, how performance is measured, and how either side can leave. If any of those is vague, you are signing a relationship rather than a contract, and the vagueness usually favours the party with more leverage, which at launch is rarely the token team. This checklist walks through the twelve clauses worth reading line by line, what a reasonable version looks like, and the warning signs that should slow you down.",{"type":30,"tag":31,"props":2047,"children":2048},{},[2049],{"type":35,"value":2050},"This is a practical guide for founders, not legal advice. Have counsel in your jurisdiction review the final document.",{"type":30,"tag":38,"props":2052,"children":2054},{"id":2053},"why-the-agreement-matters-more-than-the-pitch",[2055],{"type":35,"value":2056},"Why the Agreement Matters More Than the Pitch",{"type":30,"tag":31,"props":2058,"children":2059},{},[2060,2062,2066],{"type":35,"value":2061},"Most teams choose a market maker on reputation and a sales call, then skim the contract. But the agreement is where incentives are set. It decides whether the firm is paid for tight, deep books or merely for being present, and whether your tokens can be returned, sold or lent onward. Our guide to ",{"type":30,"tag":71,"props":2063,"children":2064},{"href":854},[2065],{"type":35,"value":1605},{"type":35,"value":2067}," explains the economics; this article covers the contract language that enforces them.",{"type":30,"tag":38,"props":2069,"children":2071},{"id":2070},"the-12-clause-checklist",[2072],{"type":35,"value":2073},"The 12-Clause Checklist",{"type":30,"tag":746,"props":2075,"children":2077},{"id":2076},"_1-scope-which-venues-and-pairs",[2078],{"type":35,"value":2079},"1. Scope: which venues and pairs",{"type":30,"tag":31,"props":2081,"children":2082},{},[2083],{"type":35,"value":2084},"List every exchange and trading pair covered. \"Major exchanges\" is not a scope. Specify whether DEX liquidity is included, and whether adding a venue later needs an amendment or is at your discretion.",{"type":30,"tag":746,"props":2086,"children":2088},{"id":2087},"_2-quoting-obligations",[2089],{"type":35,"value":2090},"2. Quoting obligations",{"type":30,"tag":31,"props":2092,"children":2093},{},[2094],{"type":35,"value":2095},"This is the core service. Look for measurable commitments:",{"type":30,"tag":55,"props":2097,"children":2098},{},[2099,2104,2109,2114],{"type":30,"tag":59,"props":2100,"children":2101},{},[2102],{"type":35,"value":2103},"Maximum bid-ask spread, expressed as a percentage of mid price",{"type":30,"tag":59,"props":2105,"children":2106},{},[2107],{"type":35,"value":2108},"Minimum depth within a defined distance from mid (for example, a stated amount within a set percentage on each side)",{"type":30,"tag":59,"props":2110,"children":2111},{},[2112],{"type":35,"value":2113},"Minimum uptime, as a share of the trading day",{"type":30,"tag":59,"props":2115,"children":2116},{},[2117],{"type":35,"value":2118},"Behaviour during volatility: are obligations relaxed, and under what exact conditions?",{"type":30,"tag":31,"props":2120,"children":2121},{},[2122,2124,2130,2131,2137],{"type":35,"value":2123},"If the contract says \"commercially reasonable efforts\" and nothing else, you cannot enforce anything. For how to read the underlying metrics, see ",{"type":30,"tag":71,"props":2125,"children":2127},{"href":2126},"/blog/what-is-a-bid-ask-spread",[2128],{"type":35,"value":2129},"what a bid-ask spread is",{"type":35,"value":1737},{"type":30,"tag":71,"props":2132,"children":2134},{"href":2133},"/blog/importance-of-order-book-depth",[2135],{"type":35,"value":2136},"why order book depth matters",{"type":35,"value":223},{"type":30,"tag":746,"props":2139,"children":2141},{"id":2140},"_3-compensation-model",[2142],{"type":35,"value":2143},"3. Compensation model",{"type":30,"tag":31,"props":2145,"children":2146},{},[2147,2149,2154],{"type":35,"value":2148},"State clearly whether you pay a monthly retainer, give a token loan with an option, share trading performance, or some blend. Each has different incentives, and none is automatically better. Check for any fee that triggers on events you do not control. The full comparison is in ",{"type":30,"tag":71,"props":2150,"children":2151},{"href":854},[2152],{"type":35,"value":2153},"market making fees and models",{"type":35,"value":223},{"type":30,"tag":746,"props":2156,"children":2158},{"id":2157},"_4-token-loan-terms-if-applicable",[2159],{"type":35,"value":2160},"4. Token loan terms (if applicable)",{"type":30,"tag":31,"props":2162,"children":2163},{},[2164],{"type":35,"value":2165},"If you lend tokens, the agreement should specify:",{"type":30,"tag":55,"props":2167,"children":2168},{},[2169,2174,2179,2184],{"type":30,"tag":59,"props":2170,"children":2171},{},[2172],{"type":35,"value":2173},"Exact quantity and the date of delivery",{"type":30,"tag":59,"props":2175,"children":2176},{},[2177],{"type":35,"value":2178},"Whether the loan is for a fixed term and when it must be returned",{"type":30,"tag":59,"props":2180,"children":2181},{},[2182],{"type":35,"value":2183},"Whether the market maker holds a call option, and the strike price and expiry",{"type":30,"tag":59,"props":2185,"children":2186},{},[2187],{"type":35,"value":2188},"What happens to unreturned tokens if the market maker defaults",{"type":30,"tag":31,"props":2190,"children":2191},{},[2192],{"type":35,"value":2193},"A loan with an option attached is not inherently bad, but you must understand the cost of the option in a rising market. Model the scenario in which the token performs well and the option is exercised in size.",{"type":30,"tag":746,"props":2195,"children":2197},{"id":2196},"_5-restrictions-on-use-of-your-tokens",[2198],{"type":35,"value":2199},"5. Restrictions on use of your tokens",{"type":30,"tag":31,"props":2201,"children":2202},{},[2203],{"type":35,"value":2204},"This is the clause teams most often skip. The contract should say your loaned tokens may only be used for market making on the agreed venues, and must not be:",{"type":30,"tag":55,"props":2206,"children":2207},{},[2208,2213,2218],{"type":30,"tag":59,"props":2209,"children":2210},{},[2211],{"type":35,"value":2212},"Sold into the open market outside normal quoting activity",{"type":30,"tag":59,"props":2214,"children":2215},{},[2216],{"type":35,"value":2217},"Rehypothecated, lent onward or pledged as collateral",{"type":30,"tag":59,"props":2219,"children":2220},{},[2221],{"type":35,"value":2222},"Moved to wallets or venues not listed in the agreement",{"type":30,"tag":31,"props":2224,"children":2225},{},[2226],{"type":35,"value":2227},"Ask for the right to see wallet addresses and balances. If transparency on inventory is refused, treat that as a major warning.",{"type":30,"tag":746,"props":2229,"children":2231},{"id":2230},"_6-reporting-and-data-access",[2232],{"type":35,"value":2233},"6. Reporting and data access",{"type":30,"tag":31,"props":2235,"children":2236},{},[2237,2239,2243],{"type":35,"value":2238},"You need regular, verifiable reporting: spreads, depth, volume, uptime and inventory by venue. Better still, ask for read-only API access or a dashboard you can check yourself. The metrics to demand are covered in ",{"type":30,"tag":71,"props":2240,"children":2241},{"href":73},[2242],{"type":35,"value":1163},{"type":35,"value":223},{"type":30,"tag":746,"props":2245,"children":2247},{"id":2246},"_7-prohibited-conduct",[2248],{"type":35,"value":2249},"7. Prohibited conduct",{"type":30,"tag":31,"props":2251,"children":2252},{},[2253,2255,2259],{"type":35,"value":2254},"The agreement should expressly bar wash trading, spoofing, layering and trading on non-public information, and make the market maker responsible for complying with exchange rules. Exchanges can delist or penalise projects associated with manipulative volume, so this protects you directly. Background in ",{"type":30,"tag":71,"props":2256,"children":2257},{"href":1740},[2258],{"type":35,"value":1743},{"type":35,"value":223},{"type":30,"tag":746,"props":2261,"children":2263},{"id":2262},"_8-term-and-renewal",[2264],{"type":35,"value":2265},"8. Term and renewal",{"type":30,"tag":31,"props":2267,"children":2268},{},[2269],{"type":35,"value":2270},"Check the initial term, auto-renewal mechanics and notice periods. A long lock-in with a short notice window for renewal is a common trap: miss the date and you are bound for another cycle.",{"type":30,"tag":746,"props":2272,"children":2274},{"id":2273},"_9-termination-rights",[2275],{"type":35,"value":2276},"9. Termination rights",{"type":30,"tag":31,"props":2278,"children":2279},{},[2280],{"type":35,"value":2281},"You should be able to terminate for cause quickly, for example if quoting obligations are missed repeatedly, if reporting stops or if the firm breaches the usage restrictions. Also check for termination without cause, and what it costs. Whatever the reason, the contract should require return of loaned tokens within a short, fixed period.",{"type":30,"tag":746,"props":2283,"children":2285},{"id":2284},"_10-performance-remedies",[2286],{"type":35,"value":2287},"10. Performance remedies",{"type":30,"tag":31,"props":2289,"children":2290},{},[2291],{"type":35,"value":2292},"What happens when obligations are missed? Reasonable options include fee reductions, cure periods, extended terms without extra cost or termination rights. Without a remedy, the quoting obligations in clause 2 are decorative.",{"type":30,"tag":746,"props":2294,"children":2296},{"id":2295},"_11-confidentiality-and-non-disclosure-of-your-plans",[2297],{"type":35,"value":2298},"11. Confidentiality and non-disclosure of your plans",{"type":30,"tag":31,"props":2300,"children":2301},{},[2302,2304,2310],{"type":35,"value":2303},"The market maker will see your launch plans, unlock schedule and inventory. Confirm confidentiality covers that, and that the firm cannot trade your token for its own account on information received from you beyond what the agreement allows. Relatedly, review your own disclosure duties around unlock calendars; see ",{"type":30,"tag":71,"props":2305,"children":2307},{"href":2306},"/blog/token-unlocks-managing-sell-pressure",[2308],{"type":35,"value":2309},"token unlocks and sell pressure",{"type":35,"value":223},{"type":30,"tag":746,"props":2312,"children":2314},{"id":2313},"_12-governing-law-regulatory-status-and-liability",[2315],{"type":35,"value":2316},"12. Governing law, regulatory status and liability",{"type":30,"tag":31,"props":2318,"children":2319},{},[2320],{"type":35,"value":2321},"Check which law governs, where disputes are resolved, and whether the firm represents that it holds any licences it needs in its jurisdiction. Look at liability caps and indemnities: a cap far below the value of the tokens you lend is worth negotiating. Regulatory expectations vary and change; treat anything here as a prompt for questions to your lawyer, not conclusions.",{"type":30,"tag":38,"props":2323,"children":2325},{"id":2324},"quick-reference-table",[2326],{"type":35,"value":2327},"Quick Reference Table",{"type":30,"tag":236,"props":2329,"children":2330},{},[2331,2351],{"type":30,"tag":240,"props":2332,"children":2333},{},[2334],{"type":30,"tag":244,"props":2335,"children":2336},{},[2337,2341,2346],{"type":30,"tag":248,"props":2338,"children":2339},{},[2340],{"type":35,"value":252},{"type":30,"tag":248,"props":2342,"children":2343},{},[2344],{"type":35,"value":2345},"Strong version",{"type":30,"tag":248,"props":2347,"children":2348},{},[2349],{"type":35,"value":2350},"Red flag",{"type":30,"tag":259,"props":2352,"children":2353},{},[2354,2372,2390,2408,2426,2444],{"type":30,"tag":244,"props":2355,"children":2356},{},[2357,2362,2367],{"type":30,"tag":266,"props":2358,"children":2359},{},[2360],{"type":35,"value":2361},"Quoting",{"type":30,"tag":266,"props":2363,"children":2364},{},[2365],{"type":35,"value":2366},"Numeric spread, depth and uptime",{"type":30,"tag":266,"props":2368,"children":2369},{},[2370],{"type":35,"value":2371},"\"Best efforts\" only",{"type":30,"tag":244,"props":2373,"children":2374},{},[2375,2380,2385],{"type":30,"tag":266,"props":2376,"children":2377},{},[2378],{"type":35,"value":2379},"Token use",{"type":30,"tag":266,"props":2381,"children":2382},{},[2383],{"type":35,"value":2384},"Restricted to listed venues and wallets",{"type":30,"tag":266,"props":2386,"children":2387},{},[2388],{"type":35,"value":2389},"No limits on use",{"type":30,"tag":244,"props":2391,"children":2392},{},[2393,2398,2403],{"type":30,"tag":266,"props":2394,"children":2395},{},[2396],{"type":35,"value":2397},"Reporting",{"type":30,"tag":266,"props":2399,"children":2400},{},[2401],{"type":35,"value":2402},"Independent data access",{"type":30,"tag":266,"props":2404,"children":2405},{},[2406],{"type":35,"value":2407},"Monthly summary PDF only",{"type":30,"tag":244,"props":2409,"children":2410},{},[2411,2416,2421],{"type":30,"tag":266,"props":2412,"children":2413},{},[2414],{"type":35,"value":2415},"Termination",{"type":30,"tag":266,"props":2417,"children":2418},{},[2419],{"type":35,"value":2420},"For-cause exit, fast token return",{"type":30,"tag":266,"props":2422,"children":2423},{},[2424],{"type":35,"value":2425},"Long lock-in, slow or unspecified return",{"type":30,"tag":244,"props":2427,"children":2428},{},[2429,2434,2439],{"type":30,"tag":266,"props":2430,"children":2431},{},[2432],{"type":35,"value":2433},"Remedies",{"type":30,"tag":266,"props":2435,"children":2436},{},[2437],{"type":35,"value":2438},"Fee reduction or exit on breach",{"type":30,"tag":266,"props":2440,"children":2441},{},[2442],{"type":35,"value":2443},"No consequence for missing targets",{"type":30,"tag":244,"props":2445,"children":2446},{},[2447,2452,2457],{"type":30,"tag":266,"props":2448,"children":2449},{},[2450],{"type":35,"value":2451},"Conduct",{"type":30,"tag":266,"props":2453,"children":2454},{},[2455],{"type":35,"value":2456},"Explicit ban on manipulation",{"type":30,"tag":266,"props":2458,"children":2459},{},[2460],{"type":35,"value":2461},"Silence on wash trading",{"type":30,"tag":38,"props":2463,"children":2465},{"id":2464},"red-flags-beyond-the-contract",[2466],{"type":35,"value":2467},"Red Flags Beyond the Contract",{"type":30,"tag":55,"props":2469,"children":2470},{},[2471,2476,2481,2493],{"type":30,"tag":59,"props":2472,"children":2473},{},[2474],{"type":35,"value":2475},"Guaranteed price levels or guaranteed volume. No market maker can promise price, and \"guaranteed volume\" often means artificial volume.",{"type":30,"tag":59,"props":2477,"children":2478},{},[2479],{"type":35,"value":2480},"Reluctance to name the venues, wallets or team behind the account.",{"type":30,"tag":59,"props":2482,"children":2483},{},[2484,2486,2492],{"type":35,"value":2485},"Pressure to sign quickly or to loan a larger inventory than the books need. Sizing guidance is in ",{"type":30,"tag":71,"props":2487,"children":2489},{"href":2488},"/blog/how-much-liquidity-does-a-token-need-at-launch",[2490],{"type":35,"value":2491},"how much liquidity a token needs at launch",{"type":35,"value":223},{"type":30,"tag":59,"props":2494,"children":2495},{},[2496],{"type":35,"value":2497},"No sample report or reference you can speak to.",{"type":30,"tag":38,"props":2499,"children":2501},{"id":2500},"negotiation-priorities-for-a-small-team",[2502],{"type":35,"value":2503},"Negotiation Priorities for a Small Team",{"type":30,"tag":31,"props":2505,"children":2506},{},[2507],{"type":35,"value":2508},"You will not win every point, so rank them. A sensible order: restrictions on token use, return mechanics, measurable quoting obligations, reporting access, then fees. Money can be adjusted later; tokens that were sold or lent onward cannot be recalled.",{"type":30,"tag":38,"props":2510,"children":2512},{"id":2511},"pre-signing-checklist",[2513],{"type":35,"value":2514},"Pre-Signing Checklist",{"type":30,"tag":55,"props":2516,"children":2517},{},[2518,2523,2528,2533,2538,2543,2548,2553],{"type":30,"tag":59,"props":2519,"children":2520},{},[2521],{"type":35,"value":2522},"Scope lists every venue and pair",{"type":30,"tag":59,"props":2524,"children":2525},{},[2526],{"type":35,"value":2527},"Spread, depth and uptime are numeric",{"type":30,"tag":59,"props":2529,"children":2530},{},[2531],{"type":35,"value":2532},"Token usage limits and wallet visibility are written in",{"type":30,"tag":59,"props":2534,"children":2535},{},[2536],{"type":35,"value":2537},"Loan, option and return terms are modelled for a bull case",{"type":30,"tag":59,"props":2539,"children":2540},{},[2541],{"type":35,"value":2542},"Reporting and data access are specified",{"type":30,"tag":59,"props":2544,"children":2545},{},[2546],{"type":35,"value":2547},"Manipulation is explicitly prohibited",{"type":30,"tag":59,"props":2549,"children":2550},{},[2551],{"type":35,"value":2552},"Termination for cause is quick, and token return is time-bound",{"type":30,"tag":59,"props":2554,"children":2555},{},[2556],{"type":35,"value":2557},"Counsel has reviewed the final version",{"type":30,"tag":38,"props":2559,"children":2561},{"id":2560},"where-fibonacci-fits",[2562],{"type":35,"value":2563},"Where Fibonacci Fits",{"type":30,"tag":31,"props":2565,"children":2566},{},[2567,2569,2573],{"type":35,"value":2568},"Fibonacci Capital works with token teams on market making and launch liquidity, and we believe clear, measurable agreements are good for both sides. If you want a second pair of eyes on a term sheet or help scoping liquidity for your listing, ",{"type":30,"tag":71,"props":2570,"children":2571},{"href":691},[2572],{"type":35,"value":2008},{"type":35,"value":223},{"title":7,"searchDepth":698,"depth":698,"links":2575},[2576,2577,2591,2592,2593,2594,2595],{"id":2053,"depth":698,"text":2056},{"id":2070,"depth":698,"text":2073,"children":2578},[2579,2580,2581,2582,2583,2584,2585,2586,2587,2588,2589,2590],{"id":2076,"depth":1521,"text":2079},{"id":2087,"depth":1521,"text":2090},{"id":2140,"depth":1521,"text":2143},{"id":2157,"depth":1521,"text":2160},{"id":2196,"depth":1521,"text":2199},{"id":2230,"depth":1521,"text":2233},{"id":2246,"depth":1521,"text":2249},{"id":2262,"depth":1521,"text":2265},{"id":2273,"depth":1521,"text":2276},{"id":2284,"depth":1521,"text":2287},{"id":2295,"depth":1521,"text":2298},{"id":2313,"depth":1521,"text":2316},{"id":2324,"depth":698,"text":2327},{"id":2464,"depth":698,"text":2467},{"id":2500,"depth":698,"text":2503},{"id":2511,"depth":698,"text":2514},{"id":2560,"depth":698,"text":2563},"content:blog:market-maker-agreement-checklist.md","blog/market-maker-agreement-checklist.md","blog/market-maker-agreement-checklist",1792978651384]