Huobi Spot Market Maker Liquidity Assessment Update

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The cryptocurrency exchange landscape is evolving rapidly, and with it, the requirements for market makers to maintain healthy liquidity. In early 2023, Huobi announced significant updates to its spot market maker evaluation framework—introducing a new dimension focused on liquidity depth. This change, effective April 1, 2023, aims to enhance trading efficiency, improve order book robustness, and ensure high-quality market-making across key trading pairs.

While the original announcement was technical and dense, this guide breaks down the changes in clear, actionable terms for current and prospective market makers. We'll explore the updated考核 (assessment) criteria, explain how weighted depth is calculated, and highlight strategic implications—all while integrating core SEO keywords such as market maker liquidity, spot trading depth, crypto market making, liquidity考核, Huobi market maker rules, and order book depth optimization.


Understanding the New Liquidity考核 Framework

Starting April 1, 2023, Huobi incorporated "Monthly Weighted Depth Ranking" as a formal考核 metric for spot market makers. This addition complements existing volume-based benchmarks and reflects a growing industry emphasis on meaningful liquidity—not just trade frequency.

The revised考核 system allows market makers to qualify under any one of three performance dimensions:

✅ Three Pathways to Qualification

  1. Monthly Weighted Maker Volume Rank

    • S-Level: Top 30% by volume
    • Level 1: 30%–70% range
    • Level 2: 70%–100% range
  2. Maker Volume Share of Platform’s Total One-Sided Volume

    • S-Level: ≥1% share
    • Level 1: 0.5% to <1%
    • Level 2: Not applicable
  3. Monthly Weighted Depth Rank (New Metric)

    • S-Level: Top 5% by depth
    • Level 1: 5%–30% range
    • Level 2: 30%–100% range

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This multi-path approach ensures flexibility while pushing market makers toward higher-quality participation. The system automatically selects the best-performing category for each participant, encouraging optimization across all dimensions.


Avoiding Disqualification: Minimum Thresholds

Even if a maker meets one of the above criteria, they must still surpass minimum thresholds to retain eligibility:

If both fall below this threshold within a考核 cycle (UTC+8), the maker risks losing their status.

This dual safeguard prevents low-activity participants from maintaining privileges without contributing meaningful liquidity—a common issue in fragmented markets.


Key Calculation: How Weighted Depth Is Measured

To understand your standing, you must grasp how Huobi calculates weighted cumulative depth.

Formula Overview

Daily Weighted Average Depth = (Daily Cumulative Order Amount × Pair Weight × Spread Weight) / Daily Tick Count

Monthly Average Depth = Sum of Daily Weighted Depths ÷ Number of Days in Month

Where:

This formula rewards consistent, tight-spread quoting on high-priority pairs—not just large but distant orders that don’t facilitate real trading.


Updated Trading Pair Weights (Spot Market)

Huobi has adjusted weights for major USDT-denominated pairs effective April 2023. These influence how much credit you earn per dollar of depth provided.

Trading PairPair Weight0.1% Spread Weight0.5% Spread Weight1% Spread Weight
BTC/USDT1.01.983.472.90
ETH/USDT1.01.982.642.15
TRX/USDT6.61.060.770.66
HT/USDT6.61.851.341.15
ADA/USDT4.56.498.676.02
AVAX/USDT4.56.938.446.51
SOL/USDT4.52.928.624.67
MATIC/USDT4.53.876.454.76
Stablecoin Pairs1.01.001.001.00

Notably:

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Derivatives Market Coefficients (Perpetual & Futures)

For U-margined and coin-margined derivatives, Huobi uses standardized coefficients:

AssetPair Weight0.1% Spread0.3% Spread0.5% Spread
BTC1.001.602.782.33
ETH1.001.622.722.55
AVAX2.084.033.573.35
MATIC2.085.283.032.41
SOL2.082.641.501.31

These coefficients reflect volatility and trading activity levels, with more dynamic assets like MATIC receiving higher rewards for tight quoting.


Operational Timeline & Support

Market makers are advised to monitor their dashboard regularly to track progress toward S-level or Level 1 status.


Important Notes & Policy Reminders

Transparency remains critical: while these guidelines offer clarity today, ongoing vigilance is required in fast-moving crypto markets.


Frequently Asked Questions (FAQ)

Q: What does "weighted depth" actually mean for my strategy?

A: It means not all order book depth is valued equally. You earn more考核 points by placing tighter spreads on higher-priority pairs like AVAX/USDT or HT/USDT than on standard pairs.

Q: Can I qualify solely through depth ranking without high volume?

A: Yes! If you're in the top 5% for weighted depth, you meet S-level criteria—even with lower trade volume.

Q: How is "spread" calculated?

A: Spread = (Ask Price – Bid Price) / ((Ask + Bid) / 2). The narrower your gap between buy and sell quotes, the higher your spread weight multiplier.

Q: Are stablecoin pairs still worth quoting?

A: Absolutely—but they’re designed for consistency rather than high reward. With neutral weights, they help maintain baseline performance during volatile periods.

Q: What happens if I fall below $1M in both volume and depth?

A: You risk disqualification from the maker program unless you recover within the same考核 month.

Q: Where can I see my daily performance data?

A: Log into the Huobi Open Platform and navigate to your Workbench for real-time analytics and historical reports.


Strategic Takeaways for Market Makers

To thrive under this new framework:

This shift signals Huobi's commitment to quality over quantity in market making—a trend mirrored across top-tier exchanges globally.

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