> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xo.market/llms.txt
> Use this file to discover all available pages before exploring further.
# Liquidity rewards
> Earn CP and USDC by keeping useful limit orders on eligible XO markets.
Liquidity rewards pay makers for keeping useful limit orders available on eligible XO order books. The program is designed to make markets easier to trade by encouraging tighter prices, meaningful size, longer resting time, and balanced liquidity on both sides.
An order does **not** need to fill to earn a liquidity reward.
Reward settings are configured per market. Always use the values shown on the Rewards page or the market you are trading; the examples below are not universal limits.
## Find an eligible pool
Open **Rewards → Available pools** to see the markets that are earning rewards in the current epoch.
Each pool card tells you what you need to know before placing an order:
| Setting | What it means |
| ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------- |
| **Max** | The farthest a quote can be from the reward midpoint and still score. `±10¢` means prices inside a 10¢ band on either side may qualify. |
| **Min size** | The minimum remaining order size. If an order falls below it after a partial fill, it stops scoring. |
| **USDC pool** | The USDC available to qualifying makers for the daily epoch. |
| **CP pool** | The Conviction Points available to qualifying makers for the daily epoch. |
| **Est. APR** | An estimate based on current qualifying liquidity. It changes as orders and participants change. |
| **Eligibility criteria** | Whether one-sided quotes can score and whether quoting both sides receives a multiplier. |
| **Rewards end** | The final UTC date for that market’s pool. CP and USDC can have different end dates. |
In the example shown above, the PONS market has a `±10¢` maximum distance, a 5-share minimum, a daily \$30 USDC pool, a daily 250 CP pool, and **Single 1× / Both 3×** eligibility.
## What earns rewards
XO combines four factors into your liquidity score.
Orders closer to the reward midpoint earn more score because they are more useful to traders.
XO derives the reward midpoint from the best qualifying bid and ask. Orders below the market's minimum size do not set that reference price. If there is no valid two-sided book, orders do not score for that interval.
If `D` is the market’s maximum qualifying distance and `d` is your order’s distance from the midpoint, the proximity weight is:
```text theme={null}
proximity weight = ((D - d) / D)² when d < D
proximity weight = 0 when d ≥ D
```
The curve is quadratic. With a `±10¢` maximum, a quote 1¢ away has a weight of `0.81`, a quote 5¢ away has a weight of `0.25`, and a quote at the 10¢ boundary earns zero.
Your score uses the shares still available on the book. The entire order must meet the market’s minimum size.
For a 5-share minimum, an order with 100 shares can score. If fills leave only 4 shares resting, that remainder stops scoring. A new qualifying order starts its own resting-time clock.
An order starts scoring after it has rested continuously for the market’s minimum time. The current minimum is 30 seconds unless the market shows a different value.
Longer-lived liquidity accumulates more score. Cancelling and reposting starts a new resting-time clock. A partial fill keeps the clock for the shares that remain.
A two-sided maker keeps eligible liquidity available in both economic directions. In a binary market, a YES bid is economically equivalent to a NO ask, while a YES ask is equivalent to a NO bid.
The market card shows the rule. **Single 1× / Both 3×** means a qualifying one-sided quote can score, while balanced quotes on both sides receive the full three-times score. A market marked **Two-sided** requires both sides; one-sided liquidity earns zero there.
Markets near 0¢ or 100¢ may require two-sided quoting because a single quote on the obvious side is less useful and easier to game.
## See the eligible range in the order book
Open an eligible market and select **Liquidity Rewards** above the order book. XO highlights the price levels inside the current reward range.
The highlighted range moves with the midpoint. An existing order can move into or out of eligibility as the book changes, even when you do not edit it.
## Worked example
Use the PONS pool shown above and round its midpoint to 50¢ for simple math:
* Maximum distance: `±10¢`
* Minimum size: `5 shares`
* Eligibility: `Single 1× / Both 3×`
* Daily pools: `$30 USDC` and `250 CP`
* Minimum resting time: `30 seconds`
Maya posts 100 shares on both sides at 49¢ and 51¢. Each side is 1¢ from the midpoint, so its proximity contribution is `100 × 0.81 = 81`. Because Maya is balanced on both sides, her instantaneous score is 81. Her orders rest for 12 hours, giving a time-weighted score of `81 × 12 = 972`.
Lee posts 100 shares on one side at 49¢. The proximity contribution is also 81, but this pool gives one-sided liquidity one-third of the full score. Lee’s instantaneous score is `81 / 3 = 27`. His order rests for 24 hours, giving `27 × 24 = 648`.
Their total score is 1,620, so Maya earns 60% and Lee earns 40% of each pool:
| Maker | Share of score | USDC reward | CP reward |
| ----- | -------------: | ----------: | --------: |
| Maya | 60% | \$18 | 150 CP |
| Lee | 40% | \$12 | 100 CP |
This example assumes no other qualifying makers and no minimum-payout restriction. Actual estimates change throughout the day as prices, order sizes, resting time, other makers, and pool funding change.
## Epochs and payouts
XO scores liquidity in daily epochs from 00:00 to 00:00 UTC. A newly enabled pool begins with the next full epoch, and parameter changes take effect from the next epoch.
At the end of the epoch, each market divides its CP and USDC pools in proportion to every maker’s time-weighted score:
```text theme={null}
your pool share = your daily score / all makers’ daily scores
your reward = your pool share × the distributable pool
```
| Reward | Where it goes |
| -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **USDC** | Credited to your XO smart wallet after daily settlement. |
| **CP** | Added to your [Conviction Points](/product/rewards/conviction-points) balance and shown in reward history. CP is XO's reward and participation currency and can fund eligible Parlay entries. |
Current-epoch earnings and estimated APR are provisional. Final rewards are calculated after the epoch closes. A reward below the market’s minimum payout is not distributed, and an epoch with no qualifying liquidity has no payout.
USDC liquidity pools can combine an XO-funded budget with a fee-funded component. On eligible fee markets, 10% of collected trading fees is allocated to the liquidity-reward pool.
**Creator Bonus** is a separate CP program. It is not part of your liquidity score.
## How to participate
1. Open **Rewards → Available pools** and choose a market.
2. Check its maximum distance, minimum size, daily CP and USDC pools, end dates, and one-sided or two-sided rule.
3. Select **Add order**, or open the market and turn on the **Liquidity Rewards** order-book highlight.
4. Place a limit order inside the highlighted range and at or above the minimum size.
5. Keep the order resting for at least the displayed minimum time. Quote both sides when the market requires it or when you want the full two-sided score.
6. Follow the current estimate on Rewards and check **History** after the UTC epoch settles.
## What does not earn
An order earns no liquidity score while any of these conditions apply:
* The market or reward pool is inactive.
* The price is at or outside the maximum qualifying distance.
* The remaining size is below the market minimum.
* The order has not completed the minimum continuous resting time.
* The market requires two sides and you quote only one economic side.
* The order has filled or been cancelled, so no shares remain on the book.
* XO cannot establish a valid reward midpoint for that interval.
* The wallet is excluded from the program.
Winning or losing the prediction does not determine the liquidity reward. The score measures the liquidity you provided.
**A resting order can fill.** Providing liquidity can leave you holding a real market position, and the position can lose value or settle at zero. Quoting farther from the midpoint may reduce fill probability but also reduces your reward score. Liquidity rewards may not cover trading losses, fees, or the cost of managing that position.