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Lesson 31 of 90

What should I look for in a market maker proposal / quote?

When evaluating proposals, focus on the following dimensions:

  • Engagement model clarity — Is the structure (loan + call option or retainer + working capital) clearly defined with explicit terms?
  • Fee structure — Are onboarding fees, monthly retainers, and profit-sharing percentages competitive and transparent?
  • Token allocation size — Does the requested allocation align with your circulating supply and float? Be wary of disproportionately large loan requests.
  • Strike pricing (for loan + call option) — Are strikes set at realistic premiums above expected TGE pricing, or are they aspirational multiples that create misaligned incentives?
  • KPI commitments — Are spread targets, depth obligations, and uptime thresholds explicitly defined?
  • Exchange coverage — Which venues will the market maker support, and does this align with your listing strategy?
  • Reporting cadence — How frequently will they report, and what data will they share?

Forgd's RFQ tool translates complex proposals into plain-text comparisons, enabling you to evaluate quotes on an apples-to-apples basis across 20+ market makers.

Evaluation DimensionWhat to Look ForRed Flag
Engagement modelClearly defined structure with explicit termsVague or hybrid structures
Fee structureTransparent onboarding, retainer, and profit-sharing termsHidden fees or opaque pricing
Token allocationProportional to float and circulating supplyDisproportionately large loan requests
Strike pricing (L+CO)Realistic premiums above TGE pricingAspirational multiples implying unrealistic FDVs
KPI commitmentsExplicit spread, depth, and uptime targetsNo measurable performance obligations
Exchange coverageAligned with your listing strategyUnsupported or misaligned venues
Reporting cadenceRegular data sharing with defined metricsInfrequent or unstructured reporting

Need help evaluating proposals or structuring your engagement? Book a consultation with the Forgd team for personalized guidance.

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