Crypto Market Maker Agreement Terms Compared
Most MM term sheets look reasonable on first read and reveal their teeth at renewal. This is a walkthrough of the clauses we negotiate hardest and the ones issuers typically miss.
- Headline clauses
- Model · KPI · Strike · Kill · Renewal
- Most-missed
- Renewal economics + inventory return
- Typical term
- 6–24 months
- Negotiable
- Almost every line, in practice
Loan vs working-capital, in clauses
Under a loan, the MM borrows inventory at a fixed strike and returns either the tokens or the cash equivalent at term-end. Under working capital, the MM uses its own balance sheet and is paid a fee plus a performance bonus. The strike mechanic is where most loan structures go wrong — model the option value before you sign.
Kill switches and KPI grace
Both sides need a defined process for venue outages, regulatory events, and KPI breaches. Without it, every minor event becomes a renegotiation.
Is the option strike negotiable?
Yes, and it should be. Most desks open with a strike that materially undervalues the embedded optionality.
Live decision on the table?
Panel design, term-sheet review, KPI matrix, or a venue rebate negotiation — direct partner time, no pitch deck.