Liquidity Rewards

Any participant who posts resting limit orders on Openfish automatically enters the liquidity reward program. Scores are computed continuously and rewards are settled once per day at midnight UTC.

The program is designed to:

• Build deep liquidity across every active market.
• Favour tight, two-sided quotes clustered near the midpoint.
• Compensate steady participation throughout a market’s life.
• Deter wash trading and manipulative order patterns.

Minimum payout: $1. Amounts below this threshold are not distributed.

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How Scoring Works

Openfish snapshots the orderbook once per minute and evaluates every maker’s resting orders. Those per-minute scores accumulate over a 24-hour epoch (1440 snapshots total), then each maker’s share of the daily reward pool is proportional to their accumulated score.

Key Parameters

Two configuration values, published per market through the CLOB API, govern eligibility:

Parameter	Description
min_incentive_size	Minimum order size eligible for rewards
max_incentive_spread	Maximum distance from midpoint eligible for rewards (in cents)

Orders smaller than min_incentive_size or wider than max_incentive_spread receive a score of zero.

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Scoring Formula

1. Order Scoring Function

Each qualifying resting order is scored with a quadratic curve that gives disproportionate weight to tighter spreads:

S(v, s) = ((v - s) / v)^2

Where:

• v = max_incentive_spread (maximum qualifying spread in cents)
• s = distance of your order from the size-cutoff-adjusted midpoint (in cents)

An order right at the midpoint scores 1.0. An order at the maximum spread scores 0.0.

2. Side Scores

At each snapshot, the system calculates two aggregate side scores:

Q_one = sum of S(v, spread_i) * size_i   for all orders on the first side
Q_two = sum of S(v, spread_i) * size_i   for all orders on the second side

A bid on the YES book and an ask on the NO book contribute to the same side, because they represent the same economic position.

3. Two-Sided Bonus

The program heavily favours participants who quote both sides. The combined score takes the minimum of the two sides, with a penalty divisor c (currently 3.0) applied when only one side is present:

When midpoint is between 0.10 and 0.90:

Q_min = max(min(Q_one, Q_two), max(Q_one / c, Q_two / c))

Single-sided orders can still score, but at one-third the rate.

When midpoint is below 0.10 or above 0.90:

Q_min = min(Q_one, Q_two)

Only two-sided liquidity scores in extreme-probability markets.

4. Normalisation and Distribution

1. Per-sample normalisation: Your Q_min divided by the sum of all makers’ Q_min in that sample.
2. Epoch aggregation: Sum your normalised scores across all 1440 samples.
3. Final share: Your epoch total divided by all makers’ epoch totals, multiplied by the market’s daily reward pool.

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Worked Example

Assume a market with adjusted midpoint 0.50 and max_incentive_spread of 3 cents.

Your resting orders (first side):

Order	Spread	Size
Bid on YES @ 0.49	1 cent	100
Bid on YES @ 0.48	2 cents	200
Ask on NO @ 0.51	1 cent	100

Q_one = ((3-1)/3)^2 * 100 + ((3-2)/3)^2 * 200 + ((3-1)/3)^2 * 100
      = 0.444 * 100 + 0.111 * 200 + 0.444 * 100
      = 44.4 + 22.2 + 44.4
      = 111.0

Your resting orders (second side):

Order	Spread	Size
Ask on YES @ 0.52	2 cents	150
Bid on NO @ 0.49	1 cent	150

Q_two = ((3-2)/3)^2 * 150 + ((3-1)/3)^2 * 150
      = 0.111 * 150 + 0.444 * 150
      = 16.7 + 66.7
      = 83.4

Since the midpoint is 0.50 (between 0.10 and 0.90):

Q_min = max(min(111.0, 83.4), max(111.0/3, 83.4/3))
      = max(83.4, 37.0)
      = 83.4

Your score for this sample is 83.4, normalised against all other makers.

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Reward API Endpoints

Endpoint	Auth	Description
GET /rewards/markets/current	Public	Current reward pools per active market
GET /rewards/markets/{condition_id}	Public	Top traders and reward estimates for a specific market
GET /rewards/user	L2	Per-market reward breakdown for the authenticated user
GET /rewards/user/total	L2	Aggregated lifetime earnings
GET /rewards/user/percentages	L2	Your share of total platform volume
GET /rewards/raw	L2	Raw per-trade reward data (up to 500 recent trades)

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Tips for Maximising Rewards

1. Quote both sides — Two-sided liquidity scores up to 3x higher than single-sided.
2. Stay tight — The quadratic scoring function heavily favours orders near the midpoint.
3. Keep size up — Scores scale linearly with order size.
4. Stay on the book — Scores are sampled every minute. Gaps reduce your epoch total.
5. Watch extremes — In markets where the midpoint is below 0.10 or above 0.90, only two-sided liquidity earns rewards.

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Next Steps

• Maker Rebates — Volume-based USDC rebates paid daily.
• Trading — Order entry and quoting best practices.