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  • Market Rules
  • Additional Terms for AMM Instructions
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  • Bullish Event Privacy Notice
Last Updated: October 18, 2022

Additional Terms for AMM Instructions

To learn about how AMM Instructions work and some of the risks involved, please read the relevant Help Center articles and Risk Warnings carefully.

Using AMM Instructions is a self-directed trading strategy.  No interest will accrue on any assets you deploy to an AMM Instruction and any and all income you earn is generated solely from trading activity using those assets. 

1. AMM Instructions

1.1 These are Additional Terms applicable to your use of AMM Instructions (as defined below), a Service offered on the Platform.  These Additional Terms supplement the Exchange Terms of Service and terms defined therein have the same meaning when used in these Additional Terms.

1.2 An “AMM Instruction” is an Instruction to use your assets according to the AMM Algorithm for market-making (i.e. continually placing Orders and entering into Trades).  Each AMM Instruction is defined by the amount of assets you choose to deploy (“Inventory”) and specific parameters you set (“Parameters”).  The Parameters collectively define the terms according to which your Inventory will be used for market-making according to the AMM Algorithm.  Any applicable requirements with respect to the amount of Inventory and the values for Parameters are described on the Platform from time to time. 

1.3 You can use multiple AMM Instructions at the same time.  Using AMM Instructions is a self-directed trading strategy.  By submitting an AMM Instruction, you have the possibility to earn income from that AMM Instruction as explained in our Help Center.

1.4 The Market Rules explain how Orders are Matched and Filled from Orders generated by AMM Instructions in order to execute Trades. Our Help Center explains the current AMM Algorithm (including its dynamic pricing capabilities).

1.5 We may set or change applicable eligibility criteria for using the Service at any time.  If we do so and we expect such changes will affect you, we shall provide Notice to you before such changes take effect (where possible).  If you no longer meet the applicable eligibility criteria at any time, you must inform us immediately and cease using the Service.

2. Risk Disclosures relating to AMM Instructions

2.1 Using AMM Instructions carries significant risk of financial loss and other risks including those described in the Risk Warnings.

2.2 You understand and agree that the Service may be delayed, unavailable or otherwise affected, including: (i) as a result of network issues, outages, scheduled or unscheduled downtime, or any interruption to or unavailability of the Service and (ii) where we are prevented from doing so under Applicable Law or pursuant to an order or request from any competent regulatory, governmental or law enforcement authority, and that we shall bear no responsibility in connection therewith. If you do not wish to accept this risk, you should not use or access the Service.

2.3 You acknowledge, accept and agree that Bullish’s liability, and your recourse against Bullish, is limited as provided in these Additional Terms and the Exchange Terms of Service, and you acknowledge, accept and agree to assume the risks described, and you waive any recourse in respect of such risks, to the maximum extent permitted by Applicable Law.  Furthermore, you are responsible, and you assume and bear all risk of loss, for, arising from or relating to use of the Service, to the maximum extent permitted by Applicable Law.  If you do not wish to accept such risks, you should not use or access the Service.

3. Submitting an AMM Instruction

3.1 You may submit an AMM Instruction at any time by submitting an instruction via the Platform.  The instruction must specify the relevant trading pair, the amount of Inventory and set all other required Parameters to use the AMM Algorithm.  When you submit an AMM Instruction, we will put a Hold on your Inventory, the composition and amount of which will depend on the current asset price at the time that we process your Instruction. If at the time of processing your Instruction, you have insufficient assets in your Account, Bullish will not process your instruction.

3.2 When you submit an AMM Instruction, you are instructing the Platform to apply the AMM Algorithm to use your Inventory for market-making (i.e. continually generating and placing multiple Orders and entering into Trades when Orders are matched).  You accept the AMM Algorithm (explained in our Help Center) “as is, where is”, you agree that you do not have the ability to instruct Bullish to alter the AMM Algorithm and you agree that Bullish may alter the AMM Algorithm from time to time at its discretion, with Notice to you in case of any substantive changes.  You understand and accept that prices offered in Orders generated by the AMM Algorithm are determined without reliance on any external pricing data, reference or source, and that deviations between the prices offered in Orders generated by the AMM Algorithm compared to the relative valuations or pricing prevailing on other digital asset marketplaces or venues listing the same assets for trading may emerge.

3.3 We reserve the right to impose and/or change requirements regarding AMM Instructions, such as minimum and/or maximum limits on the amount of Inventory and allowable values for any Parameters.  Requirements may be different for different trading pairs and will be published on the Platform.

3.4 As your Inventory gets used for executing Trades, the composition and value of assets in your Inventory changes.  By submitting an AMM Instruction, you are not  pooling your Inventory with the Inventory of any other users and you have no interest in or entitlement to any Inventory or income of any other user.  You remain beneficially entitled to the assets in your Inventory and to any income you earn, which Bullish holds on your behalf in accordance with the Terms.

4. Income

4.1 Your income is generated from trades made using your Inventory (that is, when Orders generated by your AMM Instruction are Matched and Filled in accordance with the Market Rules) (“Eligible Trades”).  You will not earn income whenever your Inventory is not being used for trading, (for example if the market price is outside the price range Parameters applicable to your AMM Instruction).  You will not earn income from other Transactions or activities on the Platform that are not Eligible Trades.

4.2 Your income earned in respect of an Eligible Trade will be based on the fees it generates (we may pay you a percentage of such fees) and your AMM Instruction’s spread (we may deduct and retain a percentage of such spread).  The way in which your income from Eligible Trades is calculated (including the applicable percentages) and paid is explained in our Help Center and is subject to change by us with Notice to you.  All fees and charges payable in connection with the Services, including Transaction Fees, are subject to change by us from time to time and any such changes may impact your income.  Income is paid in the same PFC or PDC as your Inventory but income does not form part of and is kept separate from your Inventory.

4.3 For the avoidance of doubt, no interest accrues on your Inventory and any “APY”, “annual percentage rate” or similar shown on the Platform is a non-binding estimate of your actual or potential income that does not reflect any changes in the value of your Inventory, and is provided for informational purposes only

5. Information

5.1 You can get information from the Platform about your AMM Instructions, including the amount and value of your Inventory and the amount of income you have earned.

5.2 We will exercise reasonable care to ensure that any information reported to you in relation to your AMM Instructions is accurate and complete, but we give no warranties or assurances as to the accuracy or completeness of such information.

5.3 You acknowledge and accept that we may not be able to provide information to you in relation to your AMM Instructions to the extent the Platform is unavailable for whatever reason.

6. Terminating an AMM Instruction

6.1 You may terminate an AMM Instruction at any time by submitting an Instruction via the Platform.

6.2 When you terminate an AMM Instruction, all relevant Orders will be cancelled and we will release the Hold on your Inventory, the composition and amount of which will depend on trading activity at the time that we process your Instruction and may differ from the Inventory shown in your Portfolio when you submitted the Instruction.

7. Termination or Suspension by Bullish

7.1 We reserve the right to terminate an AMM Instruction or to terminate or suspend the Service or your use of the Service in accordance with the Exchange Terms of Service.  Suspension may include a suspension on Filling Orders from AMM Instructions, a suspension in the event of a Fork or a suspension on submitting, changing or terminating AMM Instructions.  On any termination or suspension of this Service, and if we determine it necessary or desirable, any affected AMM Instructions will be terminated.

7.2 If we terminate any AMM Instruction, all relevant Orders will be cancelled and we will release the Hold on your Inventory, the composition and amount of which will depend on trading activity at the time that we process the termination.  You acknowledge and accept that we have no liability to you in connection with any decision to terminate any AMM Instruction or to terminate or suspend the Service or any loss you may suffer as a result thereof.