> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vela.monolithsystematic.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Credit System

> How Vela's market maker credit system works

## Overview

Vela uses a credit-based system to allow market makers to quote orders worth more than their deposited collateral. This is common in institutional exchange design — it allows MMs to maintain tight spreads across many markets simultaneously without tying up excessive capital.

## How It Works

Each market maker has a **credit ratio** — the ratio of their total quoted value to their deposited collateral:
credit\_ratio = total\_quoted\_value / deposited\_collateral

The maximum credit ratio is **100%** (1:1). A market maker who has deposited 10,000 USDC can have up to 10,000 USDC worth of open orders across all markets simultaneously.

When the credit ratio reaches **80%**, Vela sends a warning alert. At **100%**, new orders are rejected until existing orders are cancelled or filled.

## Live Market Maker Bot

Vela runs an internal market maker bot that provides baseline liquidity across all 16 markets. The bot:

* Fetches live prices from CoinGecko every 60 seconds
* Places 10 bid levels and 10 ask levels per market
* Maintains a 0.05% spread around the live mid price
* Steps each level 0.05% apart from the previous

This ensures the order books always have realistic prices and tradeable depth, even before external market makers join.

## Becoming a Market Maker

During the beta period, market making is open to anyone with a connected wallet. Simply deposit funds and start placing limit orders. The credit system applies automatically.

For institutional market making with private feeds and higher credit limits, contact [arya@monolithsystematic.com](mailto:arya@monolithsystematic.com).