> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aura.markets/llms.txt
> Use this file to discover all available pages before exploring further.
# Liquidity Rewards
> Earn from a daily USDT pool by posting resting limit orders near the midpoint on Aura markets. Scoring formula and qualification rules.
Aura pays makers daily to keep books tight. Post resting limit orders near a
market's true midpoint and you earn a share of that day's USDT reward pool.
Quoting on the book is the only qualification, so there is nothing to sign up for.
## The pool
| | |
| ---------------------- | ------------------------------------------------------------------- |
| Trading fee | 2.5% on executed volume, collected in USDT |
| Liquidity rewards pool | 10% of trading fees |
| Daily pool | 0.25% of the day's executed volume |
| Payouts | Daily, sent automatically to the wallet that provided the liquidity |
Unlike creator and referral fees, liquidity rewards do **not** wait for market
resolution. They are scored per day and paid the next day.
## What the program rewards
The scoring is built to pay for liquidity that is actually useful to traders:
* Tight quotes, close to the midpoint
* Two-sided quotes rather than one-sided
* Liquidity that persists through the day rather than appearing in bursts
* Size that a real trader could actually hit
And built to not pay for liquidity that only exists to farm:
* Dust orders that never intend to fill
* Quotes parked far from the midpoint
* One-sided quoting, which is penalized rather than banned
## The adjusted midpoint
Scoring measures your distance from the midpoint, so the midpoint has to be
manipulation-resistant. Aura computes it **after** filtering out dust orders below
a minimum incentive size.
Without that filter, a maker could post a tiny order at an extreme price to drag
the midpoint towards their own resting quotes and score as if they were tight. The
filter removes that.
## Scoring
Orders are scored by distance from the adjusted midpoint and by size. Closer
quotes earn sharply more, because the score falls off with the square of the
distance.
| Variable | Description |
| ----------- | ------------------------------------------------ |
| `S` | Order position scoring function |
| `v` | Max spread from midpoint |
| `s` | Spread from adjusted midpoint |
| `b` | Market multiplier |
| `c` | Single-sided penalty (`3.0`) |
| `Q_one` | Points on book one |
| `Q_two` | Points on book two |
| `Q_min` | Two-sided score |
| `Q_normal` | Normalized score |
| `Q_epoch` | Epoch score |
| `Q_final` | Final reward share |
| `BidSize` | Size of bid orders at a price level |
| `AskSize` | Size of ask orders at a price level |
| `Spread_m` | Distance from midpoint for market `m` |
| `Spread_m'` | Distance from midpoint for the complement market |
**Equation 1: order position score**
$$
S(v,s) = \left(\frac{v - s}{v}\right)^2 \cdot b
$$
**Equation 2: book one points**
$$
Q_{one} = \sum S(v, Spread_m) \cdot BidSize_m + \sum S(v, Spread_{m'}) \cdot AskSize_{m'}
$$
**Equation 3: book two points**
$$
Q_{two} = \sum S(v, Spread_m) \cdot AskSize_m + \sum S(v, Spread_{m'}) \cdot BidSize_{m'}
$$
**Equation 4: two-sided score**
If the midpoint is between 0.10 and 0.90:
$$
Q_{min} = \max\!\left( \min(Q_{one}, Q_{two}),\ \max(Q_{one}/c,\ Q_{two}/c) \right)
$$
If the midpoint is below 0.10 or above 0.90:
$$
Q_{min} = \min(Q_{one}, Q_{two})
$$
**Equation 5: normalize across makers**
$$
Q_{normal} = \frac{Q_{min}}{\sum Q_{min}}
$$
**Equation 6: sum across the epoch**
$$
Q_{epoch} = \sum Q_{normal}
$$
**Equation 7: final share of pool**
$$
Q_{final} = \frac{Q_{epoch}}{\sum Q_{epoch}}
$$
**Daily reward for a maker**
$$
Reward = Q_{final} \cdot DailyPool
$$
### Reading the formula
Three things do most of the work:
Equation 1 squares the normalized distance from the midpoint. Halving your
distance roughly quadruples your score for the same size. Moving from 5 ticks
out to 2 ticks out is worth far more than doubling your size at 5 ticks.
Equation 4 takes the minimum of your two book scores, so a maker quoting only
one side scores near zero on the other and gets pulled down. The
`max(Q/c)` term softens that to a penalty rather than a wipeout, with `c = 3.0`.
At extreme midpoints, below 0.10 or above 0.90, the softening is removed and
the raw minimum applies.
Equations 5 through 7 normalize your score against every other maker. Your
payout depends on how you quoted compared to everyone else that day, so the
same quoting behavior earns less on a crowded market than a neglected one.
## Practical approach
The single largest factor. One-sided quoting is penalized by a factor of 3.
The squared falloff means tightness beats size. Being close matters more than
being big.
Scoring samples through the day. Orders that exist for an hour earn for an
hour.
Your share is relative to other makers on the same market. An underquoted
market with real volume is worth more than the busiest one.
Orders below the minimum incentive size are filtered out of the midpoint
calculation and do not earn.
Resting orders are real orders. They fill, and you take the position. Liquidity
rewards are compensation for taking that risk, not a substitute for managing it.
## Next
Order types, the dual-book model, and how fills work.
Quote programmatically through the API.
Track the midpoint live instead of polling for it.
Running a maker bot against Aura, including elevated rate limits.