368 lines
17 KiB
Markdown
368 lines
17 KiB
Markdown
> ## Documentation Index
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> Fetch the complete documentation index at: https://docs.polymarket.com/llms.txt
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> Use this file to discover all available pages before exploring further.
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# Liquidity Rewards
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> Earn rewards for providing liquidity on Polymarket
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By posting resting limit orders, liquidity providers (makers) are automatically eligible for Polymarket's incentive program. Rewards are distributed directly to maker addresses daily at midnight UTC.
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The program is designed to:
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* Catalyze liquidity across all markets
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* Encourage liquidity throughout a market's entire lifecycle
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* Motivate passive, balanced quoting tight to a market's midpoint
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* Encourage trading activity
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* Discourage blatantly exploitative behaviors
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<Info>
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This program is heavily inspired by [dYdX's liquidity provider
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rewards](https://www.dydx.foundation/blog/liquidity-provider-rewards). The
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methodology is essentially a copy of dYdX's approach with adjustments for
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binary contract markets — distinct books, no staking mechanic, a modified
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order utility-relative depth function, and reward amounts isolated per market.
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</Info>
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***
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<Note>
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The minimum reward payout is **\$1**; amounts below this will not be paid.
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</Note>
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<Tip>
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Both `min_incentive_size` and `max_incentive_spread` can be fetched alongside
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full market objects via the CLOB API and [Markets
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API](/market-data/fetching-markets). Reward allocations for an epoch can also
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be fetched via the Markets API.
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</Tip>
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***
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## Methodology
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Liquidity providers are rewarded based on a formula that rewards participation in markets, boosts two-sided depth (single-sided orders still score), and tighter spread vs the size-cutoff-adjusted midpoint. Each market configures a max spread and min size cutoff within which orders are considered. The average of rewards earned is determined by the relative share of each participant's Q<sub>n</sub> in market m.
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### Variables
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| Variable | Description |
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| -------------- | ---------------------------------------------------------------- |
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| S | Order position scoring function |
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| v | Max spread from midpoint (in cents) |
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| s | Spread from size-cutoff-adjusted midpoint |
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| b | In-game multiplier |
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| m | Market |
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| m' | Market complement (i.e. NO if m = YES) |
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| n | Trader index |
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| u | Sample index |
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| c | Scaling factor (currently 3.0 on all markets) |
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| Q<sub>ne</sub> | Point total for book one for a sample |
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| Q<sub>no</sub> | Point total for book two for a sample |
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| Spread% | Distance from midpoint (bps or relative) for order n in market m |
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| BidSize | Share-denominated quantity of bid |
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| AskSize | Share-denominated quantity of ask |
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***
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## Equations
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### 1. Order Scoring Function
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Quadratic scoring rule for an order based on position between the adjusted midpoint and the minimum qualifying spread:
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$S(v,s)= (\frac{v-s}{v})^2 \cdot b$
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### 2. First Market Side Score
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$Q_{one}= S(v,Spread_{m_1}) \cdot BidSize_{m_1} + S(v,Spread_{m_2}) \cdot BidSize_{m_2} + \dots $
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$ + S(v, Spread_{m^\prime_1}) \cdot AskSize_{m^\prime_1} + S(v, Spread_{m^\prime_2}) \cdot AskSize_{m^\prime_2}$
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### 3. Second Market Side Score
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$Q_{two}= S(v,Spread_{m_1}) \cdot AskSize_{m_1} + S(v,Spread_{m_2}) \cdot AskSize_{m_2} + \dots $
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$ + S(v, Spread_{m^\prime_1}) \cdot BidSize_{m^\prime_1} + S(v, Spread_{m^\prime_2}) \cdot BidSize_{m^\prime_2}$
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### 4. Minimum Score
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Boosts two-sided liquidity by taking the minimum of Q<sub>ne</sub> and Q<sub>no</sub>, while still rewarding single-sided liquidity at a reduced rate (divided by c).
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**If midpoint is in range \[0.10, 0.90]** — single-sided liquidity can score:
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$Q_{\min} = \max(\min({Q_{one}, Q_{two}}), \max(Q_{one}/c, Q_{two}/c))$
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**If midpoint is in range \[0, 0.10) or (0.90, 1.0]** — liquidity must be double-sided to score:
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$Q_{\min} = \min({Q_{one}, Q_{two}})$
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### 5. Normalized Score
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Q<sub>min</sub> of a market maker divided by the sum of all Q<sub>min</sub> across market makers in a given sample:
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$Q_{normal} = \frac{Q_{min}}{\sum_{n=1}^{N}{(Q_{min})_n}}$
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### 6. Epoch Score
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Sum of all Q<sub>normal</sub> for a trader across all samples in an epoch:
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$Q_{epoch} = \sum_{u=1}^{10,080}{(Q_{normal})_u}$
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### 7. Final Score
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Normalizes Q<sub>epoch</sub> by dividing by the sum of all market makers' Q<sub>epoch</sub> in a given epoch. This value is multiplied by the rewards available for the market to get a trader's reward:
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$Q_{final}=\frac{Q_{epoch}}{\sum_{n=1}^{N}{(Q_{epoch})_n}}$
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***
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## Worked Example
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Assume an adjusted market midpoint of 0.50 and a max spread config of 3 cents for both m and m'.
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### Step 2 - First Side Score
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A trader has the following open orders:
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* 100Q bid on m @ 0.49 (spread = 1 cent)
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* 200Q bid on m @ 0.48 (spread = 2 cents)
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* 100Q ask on m' @ 0.51 (spread = 1 cent)
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$$
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Q_{ne} = \left( \frac{(3-1)}{3} \right)^2 \cdot 100 + \left( \frac{(3-2)}{3} \right)^2 \cdot 200 + \left( \frac{(3-1)}{3} \right)^2 \cdot 100
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$$
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Q<sub>ne</sub> is calculated every minute using random sampling.
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### Step 3 - Second Side Score
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The same trader also has:
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* 100Q bid on m @ 0.485 (spread = 1.5 cents)
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* 100Q bid on m' @ 0.48 (spread = 2 cents)
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* 200Q ask on m' @ 0.505 (spread = 0.5 cents)
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$$
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Q_{no} = \left( \frac{(3-1.5)}{3} \right)^2 \cdot 100 + \left( \frac{(3-2)}{3} \right)^2 \cdot 100 + \left( \frac{(3-.5)}{3} \right)^2 \cdot 200
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$$
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Q<sub>no</sub> is calculated every minute using random sampling.
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### Steps 4-7
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4. Take the minimum of Q<sub>ne</sub> and Q<sub>no</sub> (with single-sided adjustment if midpoint is in \[0.10, 0.90])
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5. Normalize against all other market makers in the sample
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6. Sum across all 10,080 samples in the epoch
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7. Normalize again to get final reward share
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***
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## April 2026 — Liquidity Incentive Program
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Polymarket is distributing over **\$5M** in liquidity incentives for April 2026 across sports and esports markets. The reward pool is split into **Pre** (pre-game) and **Live** (in-play) periods per game. Rewards are distributed pro-rata across all eligible markets within each game.
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<Note>
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This covers April 2026 sports markets. Additional categories will be added soon.
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</Note>
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### Soccer — Top 5 Leagues + UEFA
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Every game in these leagues has liquidity rewards split across pre-game and live periods.
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ----------------------- | ----------- | ------------ | ------------- |
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| English Premier League | \$2,800 | \$7,200 | \$10,000 |
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| La Liga | \$900 | \$2,400 | \$3,300 |
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| Serie A | \$900 | \$2,400 | \$3,300 |
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| Bundesliga | \$850 | \$2,150 | \$3,000 |
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| Ligue 1 | \$600 | \$1,500 | \$2,100 |
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| Champions League (QFs) | \$6,750 | \$17,250 | \$24,000 |
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| Europa League (QFs) | \$1,350 | \$3,400 | \$4,750 |
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| Conference League (QFs) | \$400 | \$1,100 | \$1,500 |
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### Soccer — Americas
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| -------------------------- | ----------- | ------------ | ------------- |
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| MLS | \$450 | \$1,200 | \$1,650 |
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| Liga MX | \$450 | \$1,200 | \$1,650 |
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| Copa Libertadores (Groups) | \$750 | \$1,900 | \$2,650 |
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| Copa Sudamericana (Groups) | \$225 | \$575 | \$800 |
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| Argentine Primera Division | \$150 | \$400 | \$550 |
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| Brasileirao Serie A | \$150 | \$400 | \$550 |
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| Colombian Primera A | \$100 | \$200 | \$300 |
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| Chilean Primera Division | \$75 | \$175 | \$250 |
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| Peruvian Primera Division | \$75 | \$175 | \$250 |
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| Bolivian Primera | \$25 | \$50 | \$75 |
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| Brasileirao Serie B | \$25 | \$50 | \$75 |
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### Soccer — Other Europe
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ------------------------ | ----------- | ------------ | ------------- |
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| Turkish Super Lig | \$550 | \$1,450 | \$2,000 |
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| Eredivisie | \$250 | \$650 | \$900 |
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| Liga Portugal | \$200 | \$550 | \$750 |
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| EFL Championship | \$150 | \$350 | \$500 |
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| Russian Premier League | \$100 | \$275 | \$375 |
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| Danish Superliga | \$75 | \$150 | \$225 |
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| Czech First League | \$25 | \$75 | \$100 |
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| Romanian Liga I | \$25 | \$75 | \$100 |
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| Ukrainian Premier League | \$25 | \$75 | \$100 |
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### Soccer — Asia / Middle East / Africa
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ----------------------- | ----------- | ------------ | ------------- |
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| Saudi Pro League | \$450 | \$1,200 | \$1,650 |
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| J1 League (Japan) | \$300 | \$800 | \$1,100 |
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| K League 1 (Korea) | \$200 | \$550 | \$750 |
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| Chinese Super League | \$100 | \$250 | \$350 |
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| A-League (Australia) | \$100 | \$250 | \$350 |
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| Indian Super League | \$75 | \$175 | \$250 |
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| J2 League (Japan) | \$25 | \$75 | \$100 |
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| Egyptian Premier League | \$25 | \$75 | \$100 |
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| Moroccan League | \$25 | \$75 | \$100 |
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| Norwegian Eliteserien | \$25 | \$75 | \$100 |
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### Soccer — Domestic Cups
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ----------------------------- | ----------- | ------------ | ------------- |
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| FA Cup (Semi-Finals) | \$850 | \$2,000 | \$2,850 |
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| DFB-Pokal (Semi-Finals) | \$450 | \$950 | \$1,400 |
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| Coppa Italia (Semi-Finals) | \$450 | \$950 | \$1,400 |
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| Coupe de France (Semi-Finals) | \$275 | \$675 | \$950 |
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### Esports — CS2
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| Tier | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ----------------------------------- | ----------- | ------------ | ------------- |
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| A Tier (ESL Pro League, BLAST) | \$1,550 | \$3,950 | \$5,500 |
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| B Tier (RMRs, Large Regional) | \$1,550 | \$3,950 | \$5,500 |
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| C Tier (Small Regional, Qualifiers) | \$150 | \$350 | \$500 |
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### Esports — League of Legends
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| Tier | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ------------------------------- | ----------- | ------------ | ------------- |
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| A Tier (LCK, LPL, LEC Playoffs) | \$1,550 | \$3,950 | \$5,500 |
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| B Tier (LCS, Other Regional) | \$1,550 | \$3,950 | \$5,500 |
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| C Tier (ERLs, National Leagues) | \$150 | \$350 | \$500 |
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### Esports — Dota 2
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| Tier | Pre \$/Game | Live \$/Game | Total \$/Game |
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| -------------------------- | ----------- | ------------ | ------------- |
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| A/B Tier (DPC, Qualifiers) | \$1,000 | \$2,500 | \$3,500 |
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| C Tier (Regional) | \$150 | \$350 | \$500 |
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### Esports — Valorant
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| Tier | Pre \$/Game | Live \$/Game | Total \$/Game |
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| --------------------- | ----------- | ------------ | ------------- |
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| A/B Tier (VCT Stages) | \$1,000 | \$2,500 | \$3,500 |
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| C Tier (Regional) | \$150 | \$350 | \$500 |
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### Esports — Other Titles
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| Game | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ------------------------- | ----------- | ------------ | ------------- |
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| Call of Duty (CDL) | \$50 | \$100 | \$150 |
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| Rocket League (RLCS) | \$50 | \$100 | \$150 |
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| Mobile Legends: Bang Bang | \$50 | \$100 | \$150 |
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| Honor of Kings | \$50 | \$100 | \$150 |
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### Basketball
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ------------------------------------- | ----------- | ------------ | ------------- |
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| NBA (Reg Season + Play-In + Playoffs) | \$2,150 | \$5,550 | \$7,700 |
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| EuroLeague (Playoffs) | \$150 | \$350 | \$500 |
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| ACB Spain | \$75 | \$200 | \$275 |
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| Lega Basket Serie A (Italy) | \$75 | \$200 | \$275 |
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| Basketball Champions League | \$75 | \$200 | \$275 |
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| CBA (China) | \$50 | \$150 | \$200 |
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| LNB Pro A (France) | \$50 | \$150 | \$200 |
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| KBL (Korea) | \$25 | \$50 | \$75 |
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| NBL (Australia) | \$25 | \$50 | \$75 |
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| B.League (Japan) | \$25 | \$50 | \$75 |
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| BBL (Germany) | \$25 | \$50 | \$75 |
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| ABA League | \$25 | \$50 | \$75 |
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| BSL (Turkey) | \$25 | \$50 | \$75 |
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| Greek A1 | \$25 | \$50 | \$75 |
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| LNB Argentina | \$0 | \$25 | \$25 |
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| VTB United League | \$0 | \$25 | \$25 |
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### Baseball
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ----------- | ----------- | ------------ | ------------- |
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| MLB | \$465 | \$1,185 | \$1,650 |
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| KBO (Korea) | \$75 | \$225 | \$300 |
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### Hockey
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| --------------------------- | ----------- | ------------ | ------------- |
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| NHL (Reg Season + Playoffs) | \$400 | \$1,100 | \$1,500 |
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| KHL (Playoffs) | \$75 | \$200 | \$275 |
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| SHL (Playoffs) | \$25 | \$150 | \$175 |
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| AHL | \$0 | \$25 | \$25 |
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| Czech Extraliga (Playoffs) | \$0 | \$25 | \$25 |
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| DEL Germany (Playoffs) | \$0 | \$25 | \$25 |
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### Tennis
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| Tour | Pre \$/Game | Live \$/Game | Total \$/Game |
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| -------- | ----------- | ------------ | ------------- |
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| ATP Tour | \$450 | \$1,000 | \$1,450 |
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| WTA Tour | \$300 | \$750 | \$1,050 |
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### UFC / MMA
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| Event Type | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ------------- | ----------- | ------------ | ------------- |
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| UFC Main Card | \$1,200 | \$3,050 | \$4,250 |
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| UFC Prelims | \$250 | \$700 | \$950 |
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### Cricket
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ---------------------------- | ----------- | ------------ | ------------- |
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| IPL (Indian Premier League) | \$1,250 | \$3,250 | \$4,500 |
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| ICC ODI Internationals | \$0 | \$50 | \$50 |
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| ICC T20 Internationals | \$0 | \$50 | \$50 |
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| Other Cricket Internationals | \$0 | \$25 | \$25 |
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| Test Cricket | \$0 | \$25 | \$25 |
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### Rugby
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| League | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ---------------------------- | ----------- | ------------ | ------------- |
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| Top 14 (France) | \$75 | \$175 | \$250 |
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| Premiership Rugby (England) | \$75 | \$175 | \$250 |
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| Super Rugby Pacific | \$75 | \$175 | \$250 |
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| United Rugby Championship | \$50 | \$125 | \$175 |
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| European Champions Cup (QFs) | \$100 | \$300 | \$400 |
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### Other
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| Event | Pre \$/Game | Live \$/Game | Total \$/Game |
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| ---------------- | ----------- | ------------ | ------------- |
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| WTT Table Tennis | \$0 | \$25 | \$25 |
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| Chess | \$25 | \$75 | \$100 |
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| PLL Lacrosse | \$25 | \$75 | \$100 |
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***
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## Next Steps
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<CardGroup cols={2}>
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<Card title="Trading" icon="chart-line" href="/market-makers/trading">
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Order entry and quoting best practices
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</Card>
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<Card title="Maker Rebates" icon="receipt" href="/market-makers/maker-rebates">
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Earn USDC rebates on eligible crypto and sports markets
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</Card>
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</CardGroup>
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