Advanced Settings and Risk Controls
Overview
While the default Market Maker Bot settings are designed to allow you to boost orderbook liquidity while remaining market-neutral, the Advanced Settings allows you to express a specific view on the market.
By adjusting Directional Bias, Reaction Times, and Spreads, you can effectively "take a bet" on price movement or volatility and potentially earn higher profits/mitigate your fees from liquidity provision.
⚠Risk Warning: Advanced settings move the bot away from neutral market making. Incorrect configurations (e.g., Grid Mode in a trending market or extreme Directional Bias) can lead to stalled orders or increased losses additional to fees.
Familiarize yourself with the advanced settings, then explore strategies for each use case on the following page.
Strategies & ConfigurationsParticipation Rate
Participation Rate controls how quickly the bot aims to complete your order by adjusting the execution speed relative to the pair's 24-hour trading volume. This determines your order duration: faster modes complete orders quickly but may have higher market impact, while slower modes spread execution over a longer period to minimize impact.
The Three Settings
Aggressive
Fastest execution speed
Calculates duration using a 0.10 rate multiplier against 24h volume
Results in the shortest order duration for a given order size
Best for: Fast-moving markets where you need to establish or exit positions quickly, or when minimizing exposure time is the priority
Trade-off: Faster execution may result in higher market impact, less favorable average fill prices and potentially higher losses
Normal (Default)
Moderate execution speed, approximately 4× longer than Aggressive for the same order size
Calculates duration using a 0.025 rate multiplier against 24h volume
Best for: General-purpose market making where you want consistent execution without excessive speed or delay
Trade-off: Balanced approach suitable for most trading scenarios
Passive
Longest order duration, approximately 10× longer than Aggressive for the same order size
Calculates duration using a 0.01 rate multiplier against 24h volume
Best for: Minimizing market impact, trading lower-liquidity pairs, or strategies where time is less critical than execution quality
Trade-off: Longer duration increases exposure to directional market moves and requires more patience. Orders may not fill at all, and eventually getting stoplossed if market moves against that order.
Important Notes
Minimum Duration: All orders enforce a 10-minute minimum duration regardless of calculated speed
Rate vs. Participation: These settings control execution pace relative to 24h volume metrics, not literal real-time market participation percentages
Market Impact: Aggressive mode consumes liquidity more quickly and may impact your average fill price, especially in low volume markets
Directional Risk: Passive mode extends your exposure window, increasing sensitivity to directional price moves
Reaction Time Interaction: Execution Mode works in conjunction with Reaction Time settings (Quick/Normal/Patient) to control both overall order duration and order refresh frequency
Reference Price: Mid Price vs Grid Mode
The bot has two distinct approaches to order placement. While Mid Price Mode was the original iteration of the bot and remains highly effective for general liquidity provision, Grid Mode introduces specific logic for profit locking (assuming price moves in your direction) and the cost of speed or potentially having your order cancelled due to auto stoploss all together.
The Reference Price determines the "center" point for your buy and sell orders. Your available spread options (see below) change depending on which reference mode you select.
Mid Price (Standard/Default):
Quotes are placed based strictly on the current order book mid-price.
Behavior: Orders float with the market price. It does not track the specific entry price of open positions when placing new quotes.
Best For: General purpose market making, volume generation, and Point farming where liquidity provision and getting the order complete is a priority over per-trade PnL.
Pros: High probability of fill, speed and follows the market trend.
Cons: Profitable spreads are not guaranteed relative to your entry price for each leg (you might buy high and sell low if the market drops fast).
Available Spread Options:
The Spread Scale (0 bps to +50 bps): The spread setting functions as a trade-off between Fill Rate and Profit Margin.
Lower Spreads (0 – 2 bps): Prioritizes Speed. You place orders very close to the market price to maximize execution frequency and capture exchange fees/rebates. The trade-off is little to no profit from the spread itself.
Higher Spreads (+5 – +50 bps): Prioritizes Margin. You place orders further away ("fishing"), waiting for volatility to hit your price. You get fewer fills, but each fill captures a significantly larger profit. However this can amplify your losses significantly.
Reaction Time
The bot places limit orders and monitors the market. If an order isn't filled after a period, it "chases" by canceling and replacing it at a new price. Reaction Time sets how long it waits before refreshing. This is only applicable to Mid Price Mode.
The Three Settings
Quick: Refreshes more frequently
Calculated as 1/1000th of order duration (minimum 1 second)
Best for, fast execution, shorter orders or when you want faster reactions
Automatically disabled for orders longer than 30 minutes
Normal: Uses backend defaults (typically 15–30 seconds)
Balanced for most scenarios
Recommended default
Slow: Refreshes less frequently
Calculated as 1/100th of order duration (minimum 1 second)
Best for longer orders to, minimize cancellations, reduce churn and trading costs
Review Order: Check estimated fees, duration, and margin requirements
Submit Order: The bot creates simultaneous buy/sell orders
Grid Mode (Advanced)
Grid mode prioritizes profit generation over simply placing limit orders. However, this approach may decrease the likelihood of order completion.
Behavior: Uses your last executed price as the anchor. It follows the rule: "Don't place buy orders higher than I sold, and don't place sell orders lower than I bought."
Best For: Range-bound (sideways) markets where you want to lock in profitable spreads.
Pros: Guarantees a $0 PnL or better on the spread itself.
Cons: Your order could stall. If the price trends strongly in one direction (e.g., pumps up), your sell order is filled, but the price moves away from your buy order. The bot will wait for price to revert. If the price never comes back, the bot stalls.
Safety Mechanism: Grid Mode has a hard stop at ±0.5% from the last fill price. If the market moves beyond this range, the order may cancel to clean up exposure and prevent indefinite bag holding.
Available Spread Options:
The Spread Scale (-10 bps to +1 0bps): In Grid Mode, the spread acts as a control for Utility vs. Profit.
Negative Spreads (-10 bps to -1bps): Price Concession. Use these values when you need to "unstick" a stalled position. By setting a negative spread, you are effectively paying a small premium to force an exit and free up your capital. The more negative the number (e.g., -10 bps), the more aggressively the bot reaches to close the trade.
Zero Spread (0 bps): Near Break-Even. Both legs execute at the exact same price. You make no profit on the spread itself but may help you rebalance your exposure faster without a deeper haircut. However, you will still be at a net-loss due to exchange and builder fee.
- Positive Spreads (+1 bps to +10 bps): Profit Locking
You set a desired profit margin above your entry price, which ensures a profitable round-trip trade. However, this increases the risk of the order stalling if the limit price isn't met. While wider spreads can lead to higher profits, they require patience as you wait for the price to reach your target. If prices do not move in your favor, you might face a stop-loss.
Stop Loss
In Grid Mode, the Stop Loss serves as your risk boundary by automatically canceling the entire market-making order. It then sends a follow-up order to close any remaining balance, ensuring you end with zero directional exposure.
How It Works:
Stop losses typically come into play when you become over-exposed on either your buy or sell leg, and the bot is waiting to reduce/rebalance exposure.
For instance, if your bot is over-exposed to long/buy orders, it halts further buying and waits to reduce the long exposure by placing sell limit orders.
Suppose you set grid 0, and it last bought BTC:PERP-USDT at an price of $90,000, the bot can only sell the BTC at $90,000 or higher.
If the price declines instead of rising to meet your sell limit price, this leads to unrealized losses. By setting a 2% stop loss, the open long position can lose up to 2% before the bot cancels the order and closes the long position to prevent further losses.
Available Options:
0.5% (50 bps) - Default: Provides tightest protection for volatile or fast-moving markets. Prioritizes minimizing risk over maximizing profits, resulting in potentially lower gains due to constrained stop-loss margins. For example, the stop loss may trigger prematurely in choppy markets, forcing you out of potentially profitable positions and missing any potential price reversion
1% (100 bps): Balanced protection. Gives the bot more room to profit from wider spreads while still protecting against losses beyond 1%.
5% (500 bps): Use when profiting from spreads is a priority and you're confident the market will stay within a rangebound (no clear directional trend). This is for users with the highest risk appetite and are willing to be patient and endure longer periods of adverse price movement in order to earn their desired spread.
Soft Reset (Grid Reset)
The Soft Reset acts as a "circuit breaker" before your Stop Loss triggers, giving your position a chance to naturally rebalance without forcing a full exit.
Behavior: When the market drifts away from your executed price by a certain fraction of your Stop Loss distance, the bot temporarily switches from quoting based on your last executed price to quoting based on the current mid-market price. This allows your unfilled leg to execute and reset your position, avoiding a Stop Loss trigger.
How It Works:
Normal Operation: Bot quotes based on your last executed price (Grid Mode).
For example (assuming Grid 0): Bot last bought BTC at $90,000, it will place a sell limit order at $90,000
Soft Reset Triggered: When price drifts by your configured percentage, bot temporarily switches to quoting on mid-market price
Continuing from the same example: Bot is waiting to reduce it's long position, but BTC price falls below 90K. Instead of trying to sell BTC at $90,000, it places a sell limit order at the mid-market price instead.
Position Resets: The unfilled leg has a better chance to execute at current market levels
Return to Normal: Once exposure rebalances, bot returns to Grid Mode behavior
Available Options (percentage of your Stop Loss distance):
Off (0%) - Default: No soft reset. The bot stays in strict Grid Mode until Stop Loss triggers or the market reverts naturally.
25%: Very conservative. Re-anchors early when price moves just ¼ of the way toward your stop loss. Maximizes position reset opportunities but may sacrifice some profit potential.
50%: Balanced approach. Re-anchors at the halfway point between your entry and stop loss. Good middle ground for most market conditions.
75%: Aggressive. Only re-anchors when you're very close to the stop loss. Prioritizes maintaining Grid Mode profit logic but risks hitting the hard stop.
Numerical Example:
If your on Grid 0, Stop Loss is set to 1%, and Soft Reset is 50%:
Bot last bought BTC at $90,000, is over-exposed and waiting to in order to rebalance exposure.
It's placing sell limit orders at $90,000 (because grid 0) but mid-market price has fallen instead of rising. Market price falls to $89,550 (-0.5% from our last executed price).
Soft reset is triggered, instead of still trying to place sell limit orders at $90,000, it places limit orders at $89,550 instead (because our soft reset is 50%; halfway between our 1% stop loss price of $89,100)
If the soft reset had been set to 0, the bot would continue placing sell limit orders at $90,000, hoping it eventually reaches that price. However, if the price continues to fall to hit our 1% stop-loss ($89,100), the order would be forced to close.
If the soft reset had been set to 25%, when market prices dip to just $89,750, the bot will cancel it's attempts to sell at $90,000 and instead try and sell at$89,750 to prevent itself from approaching too close to the stop loss and have the order continue.
IIf the soft reset had been set to 75%, the bot would be allowed to wait for market prices to drift down to $89,325 before adjusting its sell quotes down (from $90,000).
If your overexposed leg executes and exposure is rebalanced, you have avoided the 1% stop loss and a full cancellation of the order; the bot continues to run, albeit at a slight spread loss. You can think of it as an auto price concession, where you are willing to take a haircut to get a stalled bot running again, preventing the order from being stopped out altogether.
Best For: Trending markets where you want to give your position a chance to recover without being forced into a full exit.
Pros:
Provides some breating room for adverse price movement before hitting hard stop loss
Increases chances of completing round-trip trades in trending markets
Helps avoid premature exits while still maintaining risk control
Cons:
Temporarily abandons Grid Mode's profit guarantee in favor of position reset
May execute at less favorable prices compared to waiting for full reversion
In strongly trending markets, even the soft reset might not prevent eventual stop loss
When to Use:
Off: In choppy, range-bound markets where you expect mean reversion and don't need early intervention
25-50%: In moderately trending markets where you want insurance against one-sided exposure
75%: In volatile markets as a last-resort mechanism before hitting the hard stop
Numerical Examples of Spreads
Example with Mid Price + 5 bps:
Reference Price (Mid): $50,050
Buy Limit: $50,050 × 0.9995 = $50,024.98
Sell Limit: $50,050 × 1.0005 = $50,075.03
Profit per unit: $50.05 (minus fees)
Example with Grid Mode + 1 bps:
Sell executes at: $50,000
Buy Limit: $50,000 × 0.9998 = $49,990 (2 bps below sell's executed price)
Gap maintained: $10 between the limit prices
If buy executes at $49,990, profit = $10 per unit (minus fees)
Example with Grid Mode + 0 bps:
Sell executes at: $50,000
Buy Limit: $50,000 (no spread adjustment)
Both legs can execute at the same price, but the limit prices maintain the grid structure
Directional Bias Control
Directional bias control allows you to influence the timing and distribution of your buy and sell orders based on your market outlook.
How Directional Bias Works
Long Bias: Favors long positions by front-loading buy orders and back-loading sell orders
Short Bias: Favors short positions by front-loading sell orders and back-loading buy orders
Neutral: Equal timing distribution for both buy and sell orders
Additional Notes on Directional Bias
Alpha Tilt Adjustment: Directional bias maps linearly to alpha tilt adjustments (±1 → ±0.2 alpha tilt)
Buy Orders: Positive bias adds positive alpha tilt (front-loads), negative bias adds negative alpha tilt (back-loads)
Sell Orders: Positive bias adds negative alpha tilt (back-loads), negative bias adds positive alpha tilt (front-loads)
Risk Management: Extreme bias values (±1) require up to 20% additional margin to account for increased directional exposure
Use Cases
Bullish Outlook: Set positive bias to capture upward price movements more aggressively
Bearish Outlook: Set negative bias to benefit from downward price movements
Market Neutral: Keep at 0 for balanced market making without directional exposure
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