Epoch 5: Maker Liquidity Pool — 60% Platform Fee Reward
Summary:
Participants of Epoch 5 - Maker Liquidity Pool (“Maker LP”) shall be entitled to 60% of MarginX’s net platform (trading) fee and the rewards shall be distributed in $FX at the end of Epoch 5.
Duration: 11 May 2023 – 8 June 2023
Maximum pool cap: 550,000 USDT
Maker Liquidity Pool USDT (ERC20): 500,000 USDT allocation on Ethereum
Maker Liquidity Pool USDT (FXCore): 50,000 USDT allocation on f(x)Core
Overview
The quest for stress-free trading continues with MarginX Epoch 5.
Building on the popularity of past Epoch, the MarginX Epoch 5 will be rewarded with 60% net platform fee in $FX at the end of the program.
Participants shall share the risk and reward from the performance of the Maker LP proportionally, and in return, a portion of the net platform fee shall be shared among the participants.
In short, participants will be able to provide liquidity, and in turn earn a portion of MarginX’s net platform fee.
Epoch 5 : Time Table
**PLEASE TAKE NOTE THAT, USERS MIGHT LOSE THEIR FUND (NO 100% GUARANTEE PRINCIPAL)**
Things to note:
- ONLY private blockchain wallets can participate. Please do not send funds from an exchange.
- There are no principal guarantees for this version of the MarginX Liquidity Pool.
- $ETH is required to pay the gas fees for USDT (ERC20) withdrawals.
- $FX is required to pay the gas fees for USDT (FXCore) withdrawals.
- Participants need to request for withdrawals manually on maker.marginx.io.
- MarginX is not liable for any loss of funds due to user’s negligence.
MarginX Net Platform Fee Distribution
MarginX net platform fee = Platform fee - Trading fee rebate - Referral commission
Distribution of MarginX net platform fee:
60% goes to Maker LP rewards
10% goes to Insurance Pool
30% goes to MarginX Treasury
MarginX Maker LP Rewards (New!)
New Maker LP rewards = Trading profit/loss + 60% of net platform fee
For example:
60% of net platform fee is 60,000 USDT, monthly price of $FX is $0.2, MarginX will buy 300,000 $FX (60,000 / 0.2) from the open market and distribute it to all participants.
Alice contributes $300,000
Bob contributes $200,000
Charles contributes $250,000
Alice shall get 120,000 $FX (300,000/750,000 * 300,000 $FX);
Bob shall get 80,000 $FX (200,000 / 750,000 * 300,000 $FX);
Charles shall get 100,000 $FX (250,000 / 750,000 * 300,000 $FX)
However if the maker liquidity pool lose $10,000 on epoch 3, the loss shall share among the withdrawal parties
For example, if Alice and Bon made the withdrawal request (300,000 and 200,000)
Alice will only get back $294,000 [(300,000 - (10,000 * 300,000 / 500,000)]
Bob will only get back $ 196,000 [200,000 - (10,000 * 200,000 / 500,000)]
Maker Liquidity Pool - Profit / Loss Overview
Reference:
Introduction to Maker Liquidity Pool (USDT ERC-20) — Beta
Until 18 May, 11.59am (GMT+8)