Using Market-Making Bot
Comprehensive instructions for configuring and using the MM bot to execute automated market making strategies on your preferred trading pairs.
Overview
The Market Making (MM) bot is designed to provide liquidity by placing orders on both sides of the order book. It automatically manages your positions while adhering to your risk parameters and participation targets. The bot operates in real-time, analyzing market conditions and executing trades based on your configured strategy.
Bot Configuration
Bot Configuration panel is where you define the fundamental parameters for your trading bot.
Create New Bot or Select Bot
Create new bot or choose from your pre-configured bot templates. Each bot can have different settings and can be named and saved for quick deployment.
Select Account
Choose the trading account that will be used for executing trades. Hyperflash allows integration of multiple wallets and linked perp dexes for quick access in one place
Select Trading Pair
Choose the cryptocurrency pair you want to trade. Exchange specific pairs like HIP-3 assets are also available.
Leverage
Select the multiplier applied to your margin to increase position size and potential returns (or losses).
Range
1x to 40x (varies by trading pair)
Available Presets
1x, 5x, 10x, 20x, 40x
Slider
Fine-tune between preset values
Note: Higher leverage amplifies both gains and losses. At 5x leverage with $10,000 margin, you can control a $50,000 position. However, a 20% adverse move would result in a 100% loss of your margin.
⚠️ Warning: Higher leverage significantly increases liquidation risk. Only use leverage you fully understand and can afford to lose.
Risk Management
Configure your position size and participation parameters to manage exposure.
Margin
Enter the amount of collateral allocated to this bot from your account balance.
Field: Numeric input
Unit: USDC (or base currency)
Description: Determines the maximum capital at risk. Combined with leverage, this sets your maximum position size.
Volume
The maximum notional value of trades the bot can execute.
Field: Numeric input (auto-calculated based on margin and leverage)
Description: Sets the upper bound on total trading volume. At 5x leverage with $10,000 margin, your maximum volume would be $50,000.
Pre-Trade Analysis
The Pre-Trade Analysis panel provides a real-time summary of your configuration before you start trading.
Available Margin
The actual margin available in your account for this bot
$10,106.12
Leverage
The leverage multiplier you've selected
5x
POV (Percentage of Volume)
Your target share of market volume
1%
Configuration Summary
Duration
Estimated duration the bot will run before automatically stopping
20 Min
Participation Rate
The percentage of available trading opportunities the bot will take
5.0%
Lifetime Summary
Volume
Total volume traded by this bot over its lifetime
$100.60k
Net Fees
Total fees paid or earned through trading
$100.70
Advanced Strategy
The Advanced Strategy section allows fine-tuned control over the bot's market making behavior.
Participation Rate
Controls how aggressively the bot participates in market activity.
Aggressive
Higher participation rate, more frequent trading, captures more volume
Neutral
Balanced approach between volume capture and risk management
Passive
Conservative participation, fewer trades, lower exposure
Default: Neutral
Reference Price
Determines how the bot calculates the fair value price for placing orders.
Mid
Uses the midpoint between best bid and best ask as the reference
Grid
Uses a grid-based pricing model that distributes orders across multiple price levels
Note: Mid pricing is simpler and works well in stable markets. Grid pricing can capture more spread in volatile conditions but requires more careful configuration.
Direction
Sets the trading bias for the bot.
Short
Bot will have a bearish bias, preferring short positions
Neutral
No directional bias, balanced long and short exposure
Long
Bot will have a bullish bias, preferring long positions
Default: Neutral
Note: Use directional settings when you have a market view. Neutral is recommended for pure market making without directional speculation.
Spread Offset
The additional spread added to your quotes beyond the market spread, measured in basis points (bps).
Field: Option menu (0 bps, 1bps, 4bps, 5bps, 10bps)
Options: Spread Offset (e.g., 0 bps, 1 bps, 2 bps, 4 bps, 5 bps, 10 bps)
Example: At 0.2 bps (0.02%) spread offset, the bot fill orders within that margin of your quote
Default: 2 bps
Note: Higher spread offset means wider quotes, reducing fill probability but increasing profit per trade. Lower spread offset increases fill probability but reduces margin per trade.
Stop Loss
The maximum loss threshold before the bot automatically closes positions and stops trading.
Field: Dropdown selector
Options: Multiplier of margin (e.g., 0.25x)
Example: At 0.25x with $10,000 margin, the bot will stop if losses reach $2,500
Reset Value
The threshold at which the bot resets its position tracking and starts fresh.
Field: Dropdown selector
Options: Multiplier (e.g., 2x)
Description: Helps manage position drift over extended trading periods
Starting and Stopping the Bot
Save Configuration
Click Save Configuration to store your current settings for future use without having to starting the bot.
Start Trading
Click Start Trading to activate the bot with your current configuration. The bot will begin executing trades immediately based on your parameters.
📝 Note: Ensure you have reviewed all settings carefully before starting. The bot will use real funds from your selected account.
History
The History section displays a log of all trades executed by your bots.
TYPE
Order type (MM = Market Making)
MODE
Execution mode (Normal, etc.)
PAIR
Trading pair (e.g., BTC)
Account
Account used for the trade
Fees
Fees paid or received
RPNL
Realized Profit and Loss
SPREAD
Spread captured on the trade
FILLED
Amount of the order that was filled
STATUS
Current status (Completed, Active, etc.)
ACTIONS
Available actions for the trade
Filtering
Toggle Active Bots Only to filter the history to show only currently running bot trades.
Example Trades
Example 1: Conservative BTC Market Making
Scenario: You want to start market making on BTC-USDC with minimal risk while learning the platform.
Configuration
Trading Pair
BTC-USDC
High liquidity pair for safer market making
Leverage
1x
No leverage to minimize liquidation risk
Margin
$1,000
Small capital allocation for learning
Participation Rate
Passive
Lower frequency to observe bot behavior
Reference Price
Mid
Simple pricing for stable conditions
Direction
Neutral
No directional bias
Spread Offset
5 bps
Wider spread for higher profit per trade
Stop Loss
0.25x
Stop at $250 loss
Reset Value
2x
Reset after significant position buildup
Expected Outcome
Maximum Position Size: $1,000 (1x leverage × $1,000 margin)
Maximum Loss Before Stop: $250
Trading Style: Infrequent trades with wider spreads
Best For: Learning the platform, low-volatility periods
Execution Flow
Bot places bid and ask orders around the mid price with a 5 bps spread
When orders fill, bot captures the spread as profit
Bot maintains near-neutral inventory by balancing buys and sells
If losses reach $250, bot automatically stops
Example 2: Aggressive ETH Market Making
Scenario: You're an experienced trader who wants to maximize volume capture on a volatile trading session.
Configuration
Trading Pair
ETH-USDC
Volatile pair with good liquidity
Leverage
10x
Higher leverage for larger position capacity
Margin
$5,000
Moderate capital allocation
Participation Rate
Aggressive
Maximum volume capture
Reference Price
Grid
Multi-level orders for volatile markets
Direction
Long
Bullish bias based on market analysis
Spread Offset
1 bps
Tight spread for higher fill rate
Stop Loss
0.25x
Stop at $1,250 loss
Reset Value
2x
Standard reset threshold
Expected Outcome
Maximum Position Size: $50,000 (10x leverage × $5,000 margin)
Maximum Loss Before Stop: $1,250
Trading Style: Frequent trades with tight spreads, long bias
Best For: Trending markets with clear direction
Execution Flow
Bot places multiple order levels using grid pricing
Long bias means bot holds longer inventory, benefiting if price rises
Aggressive participation captures more of the available volume
Tight 1 bps spread increases fill probability
If losses reach $1,250, bot automatically stops
⚠️ Warning: This configuration carries significantly higher risk:
10x leverage means a 10% adverse move could liquidate your position
Directional bias exposes you to losses if the market moves against your view
Aggressive participation increases exposure to rapid market moves
Best Practices
Start Small: Begin with low leverage and small margin to understand bot behavior
Monitor Actively: Watch your first few trading sessions closely
Use Stop Losses: Always configure appropriate stop loss levels
Match Strategy to Market: Use passive strategies in stable markets, more aggressive in trending markets
Review History: Regularly analyze your trade history to optimize settings
Diversify: Consider running multiple bots with different configurations across pairs
Troubleshooting
Bot not filling orders
Spread offset too wide
Reduce spread offset
Excessive losses
Leverage too high
Reduce leverage, tighten stop loss
Low volume
Participation rate too passive
Increase to Neutral or Aggressive
Rapid inventory buildup
Directional bias in wrong direction
Switch to Neutral or opposite direction
Glossary
Basis Point (bps)
1/100th of a percent (0.01%)
Leverage
Borrowed capital used to increase position size
Margin
Collateral deposited to open and maintain positions
Market Making
Providing liquidity by placing orders on both sides of the order book
POV
Percentage of Volume - your share of total market volume
RPNL
Realized Profit and Loss from closed positions
Spread
The difference between bid and ask prices
Stop Loss
Automatic position closure at a predetermined loss level
For additional support contact our support team.
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