Go To Market Strategy

One major component of the platform operator's responsibilities is to set up the reward distribution system. This reward and incentive program is key to engaging the market and achieving adoption.

The Crypto Valley Exchange implements the following incentive programs, which are financed through the Platform Fund:

  • Market Maker Incentives: The Platform operator may agree specific contracts with Designated Market Makers that ensure that the market has liquidity provided to it on a continuous basis. This is particularly important in options markets where liquidity is vital to enable safe trading. In return the Designated Market Makers receive a distribution of a significant percentage of the transaction fee for providing this service.

  • Affiliate Marketing Scheme: The Platform operator creates a dedicated affiliate marketing scheme and system for the distribution of the rewards for introducing new users. Typically a front end is provided to administer this, and Crypto Valley Platform will provide such a platform for the process. The platform operator sets the level of this distribution and the mechanics at setup, the process then runs from then in perpetuity.

  • Front End Fee: The Platform operator can create a portion of the transaction fee that is received by the Front End operators at the creation of the Platform within the Protocol, this figure is set to encourage Front End operators and builders to operate on top of the platform and provide innovation as well as to encourage those who have setup front ends in other markets to connect and provide access to the protocol and specific platforms via their front ends.

  • Brokers & Structured Product Providers: Brokers and Structured Product providers are supported with a partial rebate of the fee that they provide from the Broker & Structured Products Pool, this is to encourage the bringing of client business that is executed already elsewhere into the protocol. The model for these brokers allows them to charge the client the list price and earn their rewards out of the rebate.

  • Platform Fee: The balance is allocated and managed by the Platform operator to pay third party costs for index data, and to pay for the delivery and maintenance of index prices and risk parameters.

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