A market maker's KPI report is how you verify the service is actually being delivered. A good one shows spread, depth, uptime, and volume against agreed targets, over time. If a report leads with volume and quietly omits depth and uptime, that's a warning — those are the metrics that describe a real, reliable market.
The four metrics that matter
- Spread — how tight the market is. Lower is better; check it against your target.
- Depth — how much size rests near the price. See What Is Order Book Depth?. Volume without depth is hollow.
- Uptime — the share of time live quotes are actually in the book. Liquidity that flickers on and off isn't reliable.
- Volume — useful context, but the easiest number to inflate, so never the whole story.
See the glossary for precise definitions.
What good looks like
- Spread and depth at or better than the committed targets.
- High, consistent uptime.
- Volume that's proportionate to depth, not wildly above it — the volume-to-liquidity ratio sanity-checks this.
- Metrics shown over time, so you can see trends, not a single flattering snapshot.
Reporting red flags
- Volume-only reports — hiding depth and uptime behind a big headline number.
- No committed targets — nothing to measure the numbers against.
- No cadence — reports only when you ask, so gaps go unnoticed.
These tie directly to the contract terms in Red Flags in a Market Maker Contract.
How often
Expect a regular cadence — commonly weekly — so problems surface early. Reporting is also how you hold the relationship accountable; see How to Choose a Crypto Market Maker.
A clear, honest KPI report is the difference between liquidity you can trust and a number you're asked to take on faith — and transparent reporting is how we work.
