Crypto Liquidity Resources — Formulas, Checklists, and Templates

Formula reference

Spread

absolute spread = best ask − best bid
midpoint        = (best ask + best bid) / 2
spread %        = (best ask − best bid) / midpoint × 100

Effective spread at size

buy_avg  = weighted average price walking the ask side to your size
sell_avg = weighted average price walking the bid side to your size

effective spread % = (buy_avg − sell_avg) / midpoint × 100

Slippage

slippage = (average fill price − expected price) / expected price

Negative for a buy filling higher than expected; negative for a sell filling lower.

Depth within a band

depth (±b%) = Σ bid qty where price ≥ midpoint × (1 − b/100)
            + Σ ask qty where price ≤ midpoint × (1 + b/100)

depth value = depth quantity × midpoint

Always express depth in quote-asset value when comparing across pairs.

Launch liquidity requirement

base       = largest expected single order
launch     = base × 3 to 5              (concurrency)
per side   = launch, within your impact band
total      = per side × 2 + replenishment reserve

Pre-trade check routine

Run before any order large enough to matter. Takes about a minute.

Midpoint — compute it.
Depth on the side you will hit, within your acceptable impact band.
Depth on the exit side. Can you get out?
Exclude the largest single order and recompute. Does depth survive?
Size the order to the depth you found, not to what you wanted.
Re-check immediately before submitting. Depth moves.

Any failure means reduce size, use a limit order, or decline.

Liquidity trap checklist

Before a position in an unfamiliar token:

Bid-side depth measured — at what average price would a sale fill?
Volume compared against resting depth — do they tell a consistent story?
Depth excluding the largest order still meaningful?
Contract verified on a public explorer?
Privileged functions checked — blacklist, pause, asymmetric transfer fee?
Position size small relative to bid depth?

See how to avoid common liquidity traps.

Launch liquidity plan template

The section exchanges ask for and most projects answer in one sentence. Fill in every line.

Who quotes the market: named market maker, or internal team and who
Bid-side inventory: amount of quote asset committed
Ask-side inventory: token amount committed
Target spread: percentage
Target depth: value within band, per side
Impact band used: percentage
Replenishment reserve: amount and trigger
Duration of commitment: period
Responsible contact during launch: name and channel
Wind-down plan: what ending active market making looks like

Depth measurement log

For any pair you intend to trade or operate, sample repeatedly rather than once.

Date/time	Conditions	Spread %	Bid depth (±2%)	Ask depth (±2%)
	calm
	volatile
	thin hours

The volatile row is the one to size against. Depth measured on a calm afternoon is not the depth available during the move you will want to trade.

Order type decision

Situation	Use
Deep book, need certainty of fill	Market order
Thin book, any size	Limit order
Need immediacy but want a bound	Marketable limit order
Size exceeds available depth	Split over time, or reduce size
Not time-sensitive	Rest a limit order and earn the spread

Guides

Concepts

How-to

Reference

Liquidity Resources — Formulas, Templates, and Routines