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How long does a typical market making engagement last?

Engagement duration varies by model. Loan + call option arrangements typically have a tenor of 6-18 months, aligned with the option exercise timeline. Retainer + working capital engagements are often structured as month-to-month or with 3-6 month initial commitments, providing more flexibility to adjust or terminate if performance falls short. Regardless of model, build review checkpoints into your agreement — quarterly performance reviews tied to KPI adherence are a best practice.

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