How to participate in Bitfinex liquidity mining? (Yield Farming)

Understanding Bitfinex Liquidity Mining Mechanics

1. Bitfinex liquidity mining operates through the platform’s native token distribution program tied to specific trading pairs and order book depth requirements.

2. Participants must maintain active limit orders on designated markets such as UNI/USD, AAVE/USD, or ETH/USD during defined reward epochs.

3. Rewards are calculated based on the relative contribution of each participant’s order volume, price proximity to mid-market, and time-weighted order presence.

4. The system aggregates data every 15 minutes to assess eligibility, with no retroactive adjustments once an epoch closes.

5. Tokens distributed include LEO, the exchange’s utility token, alongside occasional partner tokens like RAY or SRM, depending on campaign parameters.

Account Setup and Eligibility Requirements

1. Users must hold a verified Bitfinex account with KYC Level 2 status to access liquidity mining dashboards and claim rewards.

2. A minimum balance of 100 LEO is required in the main wallet to qualify for participation in most campaigns.

3. Margin trading permissions must be enabled, and users need to have previously executed at least five trades across any spot or margin market.

4. API keys used for automated order placement must be configured with “Order Execution” and “Account Information” permissions only—no withdrawal rights permitted.

5. Accounts flagged for abnormal trading patterns, including wash trading or quote stuffing, are automatically excluded from reward calculations.

Order Book Participation Rules

1. Only limit orders placed within 1% of the current mid-price are counted toward reward eligibility.

2. Orders must remain unfilled for a minimum duration of 60 seconds to register as valid liquidity provision.

3. Market orders, stop orders, and trailing stops do not contribute to mining metrics under any circumstance.

4. Order size thresholds vary per pair; for instance, ETH/USD requires a minimum order size of 0.05 ETH, while BTC/USD mandates 0.002 BTC.

5. Cancellation frequency is monitored—users who cancel more than 40% of their posted orders within an epoch receive reduced weightings in the final reward allocation.

Reward Distribution and Claiming Process

1. Rewards are distributed in LEO tokens every 72 hours, with timestamps aligned to UTC midnight.

2. Each payout includes a breakdown visible in the “Liquidity Mining” section of the dashboard, listing order count, average spread contribution, and token allocation.

3. Unclaimed rewards expire after 90 days and are forfeited without notice or compensation.

4. Users may elect automatic conversion of earned LEO into USD stablecoins via the “Auto-Sell” toggle, subject to a 0.1% fee applied at execution.

5. Tax documentation is generated monthly and accessible in PDF format, detailing gross token receipts and platform-reported fair market value at time of distribution.

Frequently Asked Questions

Q: Can I use multiple accounts to increase my reward share?A: No. Bitfinex enforces strict one-account-per-verified identity policy. Duplicate accounts trigger immediate disqualification and permanent suspension of all associated wallets.

Q: Do maker-taker fees affect my mining rewards?A: Maker fees are waived entirely for eligible liquidity mining orders. Taker fees remain unchanged and are deducted separately from trading balances—not from mining payouts.

Q: Is there a minimum uptime requirement for API-based bots?A: Bots must maintain connectivity for at least 85% of each epoch duration. Downtime exceeding 15% results in proportional reduction of reward weight, calculated per hour.

Q: Are cross-margin positions included in liquidity mining calculations?A: Cross-margin positions are excluded. Only isolated margin orders placed directly on the selected liquidity mining markets qualify for inclusion in reward computation.