Cell
Search…
Profits
$$

There are 2 major sources of profit running a grid bot, Bot Profit and Position Profit

bot_profit = strategy_profit + market_making_rewards

This is the gain by executing the grid strategy 7/24. The bot will constantly enqueue the Buy/Sell orders in a LIFO (Last In, First Out) manner, and make money by earning the price difference of a single (or sometimes multiple) grid interval(s) from a match.
Profiti=QDiProfit_i = Q * D_i
where,
Profit_i = Profit for the i'th match.
Q = Grid Quantity (or Quantity/Order)
D_i = Price Difference for the i'th match
The total strategy profits is the sum of every single match.
Pb=Profit1+Profit2+...+ProfitnP_b = Profit_1 + Profit_2 + ... + Profit_n
Let's take a look at an example below. Assume we have a grid setup for ETH that goes between 2500 ~ 3500, with a $200 interval, and the qty/order is 1ETH. Then the orders queue would look like this:
Initial: [email protected] -> queue size = 1
t1: [email protected] | [email protected] -> queue size = 2
t3: [email protected] | [email protected] -> queue size = 2
At t3, the first order match ([email protected] and [email protected]) happens, and bot helps us make a $200 profit with a grid quantity (Q) of 1ETH, and price difference (Di) of $200.

This comes from rebates received when the bot places limit orders on the orderbook.
Mango Market, for example, gives 3bp (0.03%) Maker rewards currently.

Position profit (P_p) is self explanatory. It is the profit by holding the positions since bot started. This can also be a loss in the case of a reversal market from the time your strategy started.
position_profit = (current_market_price - avg_position_cost) * position_size

We show Bot APR (APR_b) and Total APR (APR_t) throughout the product. They are calculated as following:
APRb=(Pb/Investment)/Duration365 APR_b = (P_b / Investment) / Duration * 365
APRt=((Pb+Pp)/Investment)/Duration365 APR_t = ((P_b + P_p)/ Investment) / Duration * 365

You can go to the Portfolios page to check profits of all your running bots.
Copy link
On this page
Profits Breakdown
Bot Profit
Position Profit
APR
How to check Bot Profits?