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chore: apply suggestions from code review
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Co-authored-by: Tom <tom@vegaprotocol.io>
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cdummett and TomMcL committed May 20, 2024
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Expand Up @@ -189,7 +189,7 @@ Note, as a position can not be created on a Spot market. Trading activity on a S

The LP performance metric, $m_{rz}$, measures the quality of the liquidity a party supplies.

This metric differs from the [Liquidity Fees Received](#fee-based-reward-metrics) metric as instead of evaluating the actual liquidity fees received, the network evaluates how "virtual fees" would have been allocated and distributed. This is done to reward LPs for providing liquidity even in periods where this is reduced trading volume.
This metric differs from the [Liquidity Fees Received](#fee-based-reward-metrics) metric as instead of evaluating the actual liquidity fees received, the network evaluates how "virtual fees" would have been allocated and distributed. This is done to reward LPs for providing liquidity even in periods where there is reduced trading volume.

The virtual fees which should be virtually allocated each fee distribution window are set at 1 quantum worth of the asset in which the fees are collected (e.g. for perpetual and future markets this is the settlement asset, for spot markets this is the quote asset).

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### LP Performance Metric

- An LP with a non-zero liquidity score whom meets the time on book requirement (with respect to the SLA parameters defined in the reward setup) will receive LP performance rewards even if the traded volume was zero and no actual liquidity fees were accumulated (<a name="0056-REWA-170" href="#0056-REWA-170">0056-REWA-170</a>).
- An LP with a non-zero liquidity score who meets the time on book requirement (with respect to the SLA parameters defined in the reward setup) will receive LP performance rewards even if the traded volume was zero and no actual liquidity fees were accumulated (<a name="0056-REWA-170" href="#0056-REWA-170">0056-REWA-170</a>).

- An LP which accumulates no "virtual fees" throughout the epoch will not receive LP performance rewards at the end of the epoch as they would not have been distributed any "virtual fees" (<a name="0056-REWA-171" href="#0056-REWA-171">0056-REWA-171</a>).
- An LP which accumulates "virtual fees" throughout the epoch but does not meet the time on book requirement will not receive LP performance rewards at the end of the epoch as they would not have been distributed "virtual fees" (<a name="0056-REWA-172" href="#0056-REWA-172">0056-REWA-172</a>).
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