> ## Documentation Index
> Fetch the complete documentation index at: https://docs.limitless.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# LP Rewards

> Earn rewards for providing liquidity with limit orders

## Overview

The LP Rewards program incentivizes providing liquidity by rewarding well-placed limit orders. These rewards promote tighter spreads, thicker order books, and a healthy marketplace.

The design iterates on an industry-standard approach used by dYdX and Polymarket, with specifically tuned parameters to ensure competitiveness and fairness.

## Methodology

* You earn rewards by placing limit orders **within a specific spread from the market midpoint**\*
* The **closer** an order is to the midpoint and the **more competitive** its size, the higher the reward
* To qualify, orders must exceed the **minimum size threshold** set on a per-market basis
* Limitless calculates rewards **every minute** across all markets and pays them out daily at **22:30 UTC**
* The daily payout pays your **full unpaid balance**. There is no minimum payout amount, and sub-cent balances are included.

<Note>
  \*To maintain a fair market-making experience, only limit orders that exceed the minimum shares threshold count toward the midpoint calculation.
</Note>

## Rewards parameters

Each market has 3 parameters that define how rewards are paid out:

| Parameter      | Illustrative example | Description                                    |
| -------------- | -------------------- | ---------------------------------------------- |
| **Rewards**    | \$10                 | Daily USDC rewards available for the market    |
| **Spread**     | 3c                   | Maximum distance from midpoint to earn rewards |
| **Min Shares** | 100                  | Minimum order size to qualify                  |

These parameters are set to support positive market activity while accounting for each market's uniqueness.

<Note>
  **All three values are set per market and change over time.** The numbers
  above only illustrate the shape of the parameters, not what any market pays.
  For the live, authoritative values, see the
  [Limitless Rewards page](https://limitless.exchange/rewards) or the market
  itself on the platform.
</Note>

## Bonus multiplier

Limit orders placed **closer to the midpoint** earn additional rewards through a bonus multiplier. The tighter your spread, the greater your share of rewards.

## One-sided liquidity

To promote tail-end speculation, earning from one-sided liquidity is only allowed while the odds are between **5% and 95%**. This provides LPs (liquidity providers) with greater flexibility in managing their positions while still fostering a robust and efficient market structure.

## Time-based reward schedules

A market's daily rewards budget can scale up or down at specific hours or days of the week. Schedules run in **Eastern Time**, and the active window multiplies the per-minute reward rate (for example, a 2× boost during peak hours or a 0.5× dim overnight).

* By default, no schedule applies and rewards pay at the flat rate 24/7.
* A platform-wide schedule can dim rewards during low-activity windows, and it never increases a market's daily cap.
* Individual markets can override the platform schedule to boost specific windows, within the market's daily rewards cap.

Limitless records the applied multiplier per market per minute, so your payouts always reflect the schedule that was active when your orders earned.

## Note on adjustments

These parameters are dynamic and may be adjusted over time to meet the exchange's needs and maintain a thriving marketplace.