Liquidity provision is a business. Market makers deploy capital, assume inventory risk, and allocate internal resources based on expected return. If you attempt to squeeze providers too aggressively on economics, they may reduce priority, widen spreads, deploy less capital, or reallocate resources to more attractive mandates.

Sustainable structures create balance. Compensation should reflect measurable performance — depth within defined bands, spread discipline, uptime, and responsiveness during volatility — while still allowing the provider to earn a rational return.

Overly extractive terms often backfire. Under-aligned terms waste capital. The objective is long-term liquidity quality, not short-term fee minimization.

A disciplined RFQ process helps benchmark structures competitively and align incentives without degrading priority. If you want to structure and negotiate liquidity support properly, book a consultation with Forgd.