What are the criteria for choosing a market maker?
The weights add up to 100 and reflect what most affects a token's market. Change them to fit your project in the scorecard tool.
| Criterion | Weight | What a strong answer looks like |
|---|---|---|
| Per-venue commitments | 15 | Maximum spread, minimum depth at 0.5%, 1% and 2%, and uptime, for each exchange and pool |
| Cost in dollars | 12 | Fee stated; options valued at a volatility that fits a new token |
| Account and key control | 10 | Project-owned sub-accounts, trade-only keys, no withdrawal rights |
| Conduct and contract | 10 | No profit share, no price or volume promises, disclosable to exchanges |
| Verifiable reporting | 10 | Reports checkable against public data or a third-party tracker |
| Venue coverage | 8 | Live on your exchanges and DEXs, not just logos |
| CEX and DEX on one book | 8 | One reference price and one inventory across venues |
| Behaviour in stress | 7 | Written limits and re-quote times for volatile markets |
| Track record | 6 | Years live, current mandates, references you can call |
| Fit for your size | 6 | Takes tokens of your market cap and volume |
| Lifecycle services | 4 | Listing support, unlock planning, treasury and exit |
| Legal and jurisdiction | 4 | A named entity that can serve you, under a law you accept |
What is the market maker evaluation checklist?
Twenty-four points in six groups. A firm that cannot answer a point in writing has not met it.
| Group | Check | Evidence to ask for |
|---|---|---|
| Commitments | 1. Maximum spread per venue | Number in basis points in the contract |
| Commitments | 2. Minimum depth at 0.5%, 1% and 2% | Dollar amounts per side, per venue |
| Commitments | 3. Uptime | Percentage and how it is measured |
| Commitments | 4. Stress behaviour | Limits and re-quote time in volatile markets |
| Cost | 5. Retainer amount | Per venue, per month |
| Cost | 6. Loan size and term | Share of supply and months |
| Cost | 7. Option strikes and value | Strikes, and a dollar valuation |
| Cost | 8. Who receives exchange rebates | Stated in the contract |
| Control | 9. Account ownership | Sub-accounts in the project's name |
| Control | 10. API key permissions | Trade only; withdrawals disabled; IP-bound |
| Control | 11. Wallet labelling | List of every wallet used |
| Control | 12. Return of assets | Terms for returning loans and settling options |
| Conduct | 13. No profit share | Confirmed in the contract |
| Conduct | 14. No price or volume promises | Confirmed in writing |
| Conduct | 15. Self-trading policy | Written policy against wash trading |
| Conduct | 16. Exchange disclosure | A version of the contract an exchange can see |
| Reporting | 17. Report cadence | Daily data; monthly report |
| Reporting | 18. Independent verification | Public data match or third-party tracker |
| Reporting | 19. Inventory statement | Balances by venue and wallet |
| Reporting | 20. Event reporting | Depth before and after unlocks and listings |
| Fit | 21. Your venues live today | Current pairs on each exchange and DEX |
| Fit | 22. Tokens of your size | Smallest current mandate |
| Fit | 23. References | Two projects you can contact |
| Fit | 24. Legal entity and jurisdiction | Entity name, law, and that it can serve you |
What are the pricing models, and what do they cost?
Published guidance on price varies by source. Put every offer into dollars before comparing.
| Model | How it works | Published range | Watch for |
|---|---|---|---|
| Retainer | Monthly fee; the project lends tokens and stablecoins and keeps control | $3,000 to $7,000 a month per exchange (Arrakis); $5,000 to $15,000 a month (AppWorks) | Prepayment of three to six months |
| Token loan with call options | The market maker borrows tokens and is paid through options to buy them | 0.5% to 5% of supply for 12 to 24 months | Option value: about $275,000 to $550,000 per $1M loaned over 12 months |
| Hybrid | A smaller fee with smaller options | Negotiated | Paying twice for the same service |
| Profit share | The market maker takes a share of trading profit | Binance tells projects to avoid it | |
| Self-service software | The project runs the tools and pays for usage | Usage-based | You carry the operations and the risk |
How does a token loan compare with a retainer in dollars?
Cost of market making structures on a $1M token loan
Market maker, liquidity provider or trading firm: what is the difference?
| Contracted market maker | Liquidity provider | Proprietary trading firm | |
|---|---|---|---|
| Works for | The token issuer, under a mandate | Itself or a pool | Itself |
| Obligation | Spread, depth and uptime per venue | None; capital can leave | None |
| Paid by | Fee or options from the issuer | Pool fees and incentives | Its own trading profit |
| Quotes your token because | The contract requires it | It expects fees | It sees a trading edge |
| In a crash | Bound by written stress terms | May withdraw | May withdraw |
| Reports to you | Yes | No | No |
What are the red flags?
A price or volume promise
No firm can deliver either lawfully. It signals wash trading or a misunderstanding of the job.
Profit share
It pays the firm to trade against your holders. Binance's 2026 guidance names it.
Withdrawal rights
A market maker needs to trade, not to move your assets.
A free token loan
The options are the price. Ask for the dollar value.
Reports you cannot check
A monthly PDF with no way to verify it is not reporting.
Reluctance to disclose the contract
Exchanges now ask to see market maker terms.
How do you choose a market maker in 30 days?
- 1
Days 1 to 5: brief
Venues, volume tier, release schedule, budget and KPI targets.
- 2
Days 6 to 12: shortlist
Send the brief and the checklist to three or four firms.
- 3
Days 13 to 18: price
Convert each offer to dollars and score it.
- 4
Days 19 to 25: negotiate
KPIs per venue, reporting, tranches, return terms.
- 5
Days 26 to 30: set up
Accounts, keys, wallets and a reporting dry run.
Which tools and comparisons help?
- Market maker scorecard
Score up to three firms on the 12 criteria in this guide.
- Market making cost calculator
Compare a retainer with the dollar value of a token loan.
- Crypto market making
How the service works, deal structures and conduct rules.
- Best crypto market makers in 2026
TDMM's ranked list with its criteria.
- Best market makers for small-cap tokens
Firms that take smaller tokens.
- Compare market makers
TDMM set beside 16 other firms, one page each.
- Crypto market maker vs liquidity provider
The difference, with data.
- TDMM Liquidity Benchmark
Targets to write into a contract.
- Market making glossary
Plain definitions of the terms in a market making contract.
Frequently asked questions
How do I choose a market maker?
Compare written terms from three or four firms on per-venue spread, depth and uptime, cost in dollars, account control, contract conduct and verifiable reporting. Score each offer, check references, and reject any firm that promises price or volume.
What should a crypto market maker evaluation checklist include?
Commitments (spread, depth, uptime, stress terms), cost (fee, loan, option value, rebates), control (accounts, keys, wallets, return of assets), conduct (no profit share, no promises, self-trading policy, disclosure), reporting and fit. TDMM's checklist has 24 points.
How much does crypto market making cost?
Retainers run about $3,000 to $7,000 a month per exchange according to Arrakis, or $5,000 to $15,000 a month according to AppWorks. A token loan costs no cash but the options are worth about $275,000 to $550,000 per $1 million loaned over 12 months in TDMM's model.
What are the crypto market maker pricing models?
Retainer, token loan with call options, a hybrid of the two, profit share and self-service software. Retainer and loan are the common ones. Exchanges such as Binance tell projects to avoid profit share.
What is the difference between a market maker and a trading firm?
A contracted market maker works for the token issuer and is bound to quote within agreed spread and depth. A proprietary trading firm trades for its own profit and has no obligation to any token's market.
What is the difference between a market maker and a liquidity provider?
A liquidity provider supplies capital and can withdraw it at any time. A market maker under contract commits to a spread, a depth and an uptime figure on each venue and reports against them.
How do I select a liquidity provider for a crypto project?
Apply the same test as for a market maker: what is committed in writing, what it costs in dollars, who controls the assets and how results are verified. For DEX-only liquidity, also ask who bears impermanent loss.
Which market makers support small-cap and emerging tokens?
Fewer than serve large tokens. Ask each firm for its smallest live mandate. TDMM works with small-cap and emerging tokens and publishes spread and depth benchmarks for books trading from $5,000 a day.
Related TDMM offerings and guides
Offerings
TDMM publishes this guide and provides the services it describes. Figures are dated in the text and come from TDMM research and named public reports. This is information only, not investment, legal or tax advice. TDMM does not promise token prices, trading volume or exchange listings.