> For the complete documentation index, see [llms.txt](https://docs.vdex.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vdex.trade/trading/yield/virtual-market-maker.md). # Virtual Market Maker The Virtual Market Maker (VMM) is a trading vault that provides liquidity to VDEX, performs liquidations, and acts as a [common counterparty](/protocol/whitepaper/virtual-market-maker.md). It utilizes Betancourt's formula among other algorithmic market making strategies to minimize the possibility of drawdowns, while ensuring tight spreads. The VMM democratizes opportunities that are reserved for insiders in centralized exchanges. The VMM is transparent and permissionless so that any user can provide liquidity and share equally in profits. The VMM is fully community-owned and autonomously operated. The VMM profits through the bid-ask spread, net funding, and trading fees. All excess trading fees are awarded to the VMM as yield. The vault lock-up period is 24 hours after initiating a withdrawal. Balance is reflected according to the most recent epoch, which is updated every 10 minutes. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.vdex.trade/trading/yield/virtual-market-maker.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.