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

# MarketMakerMinimal (Mode 1002) — Smaller-Capital Market-Making

> Smaller-capital variant of MarketMaker. Same FDUSD-only logic at reduced scale — designed to learn the market-making dynamics before committing larger capital.

<Info>
  **MarketMakerMinimal (Mode 1002) is the entry-level variant of MarketMaker (Mode 1001).** Same FDUSD-only logic at reduced scale. Designed for operators wanting to learn market-making dynamics on `~$5,000` before committing the `$20,000+` that the full MarketMaker mode prefers.
</Info>

## The mode at a glance

| Property                   | Value                                |
| -------------------------- | ------------------------------------ |
| **Mode number**            | 1002                                 |
| **Quote asset**            | `FDUSD` only                         |
| **Venue**                  | Binance only (FDUSD markets)         |
| **Strategy type**          | Market-making (rebate harvesting)    |
| **Recommended capital**    | `~$5,000`                            |
| **Reserve recommendation** | `~$2,500` (`50%` of trading capital) |
| **Best regime fit**        | Same as MarketMaker (Mode 1001)      |
| **Worst regime fit**       | Same as MarketMaker (Mode 1001)      |

## When to use MarketMakerMinimal

<CardGroup cols={2}>
  <Card title="You want to learn market-making" icon="graduation-cap">
    Market-making behavior is meaningfully different from directional modes. MMM lets you feel the dynamics on `$5,000` before committing more.
  </Card>

  <Card title="Capital `$5,000–$10,000`" icon="circle-dollar">
    The calibrated range. Below `$5,000`, market-making per-trade economics break down. Above `$10,000`, MarketMaker (Mode 1001) is more appropriate.
  </Card>

  <Card title="You want FDUSD exposure with reduced commitment" icon="balance-scale">
    Some operators want a small FDUSD-pair allocation alongside their directional modes on USDT pairs. MMM is the right tool.
  </Card>
</CardGroup>

## How it relates to MarketMaker (Mode 1001)

| Aspect               | MarketMaker (Mode 1001)              | MarketMakerMinimal (Mode 1002) |
| -------------------- | ------------------------------------ | ------------------------------ |
| **Capital**          | `$20,000+`                           | `~$5,000`                      |
| **Strategy logic**   | Same                                 | Same                           |
| **Quote asset**      | FDUSD                                | FDUSD                          |
| **Venue**            | Binance                              | Binance                        |
| **Per-order sizing** | Larger                               | Smaller                        |
| **Best for**         | Validated operators committing scale | Learning at smaller commitment |

## When NOT to use MarketMakerMinimal

<Warning>
  * ❌ **Non-FDUSD pairs** — the rebate structure doesn't exist there.
  * ❌ **Non-Binance venues** — no equivalent rebate.
  * ❌ **Capital below `$3,000`** — per-trade economics break down even with the smaller calibration.
  * ❌ **Capital above `$10,000`** — switch to MarketMaker (Mode 1001) for better per-order economics.
  * ❌ **First-month operators** — start with BasicMode. Market-making is a level-2 pattern.
  * ❌ **Strong directional moves on the symbol** — same constraint as Mode 1001.
</Warning>

## Best practices

<Tip>
  * ✅ **Use `BTC/FDUSD` or `ETH/FDUSD`** — the most-liquid FDUSD pairs.
  * ✅ **Run for 1 month before evaluating** — market-making dynamics need time to reveal.
  * ✅ **Hold inventory in both base and quote** — initial top-up of both before starting.
  * ✅ **Maintain BNB balance** for the standard fee discount on top of the maker rebate.
  * ✅ **Don't expect dramatic returns** — market-making yield is steady but small.
  * ✅ **Watch order book depth weekly** — strategy depends on counterparty flow.
  * ✅ **Plan to graduate to MarketMaker (Mode 1001)** once you have validated behavior and `$20,000+` ready.
  * ✅ **Treat as paid education** at this capital level, similar to MinimalMoney for directional modes.
</Tip>

## What's next

<CardGroup cols={2}>
  <Card title="MarketMaker (Mode 1001)" icon="scale-balanced" href="/strategies/modes/marketmaker">
    Graduate to the full mode at `$20,000+`.
  </Card>

  <Card title="BasicMode (Mode 4)" icon="seedling" href="/strategies/modes/basicmode">
    Directional alternative for USDT pairs.
  </Card>

  <Card title="Binance Setup" icon="building-columns" href="/exchanges/binance">
    Setup including FDUSD pair access.
  </Card>

  <Card title="Risk Management" icon="shield" href="/risk-management/overview">
    Inventory risk in market-making.
  </Card>
</CardGroup>