ECONOMICS AND FEES
Pari-mutuel, peer against peer. Every dollar a winner collects is a dollar a loser actually lost on the same tick, in the same pool. Nobody at the table is the house.
THE PARI-MUTUEL TICK
Each tracked asset has one pool holding every open position, longs against shorts. On every economic tick:
- The tape's move sizes what each side would win or lose on its notional.
- The transferred pot is bounded by the smaller side:
pot = min(winning side's claim, losing side's capacity). - Each loser pays at most its own remaining equity. Nobody can lose money they did not bring.
- Winners split exactly what was collected, pro-rata to their claims. Not a cent more is minted.
Consequences worth internalizing:
- A one-sided market freezes. If everyone is long and nobody is short, there is nobody to collect from: PnL stalls until an opponent shows up. This is also why your entry leverage is capped by the opposing side's depth.
- No funding rate, no hidden bleed. Your counterparty is visible: it is the other side of the pit.
- Eating is part of the economics. An eat moves the victim's remaining equity to the eater. Physical skill and market skill cash out through the same ledger.
THE ONLY THREE FEES
| MOMENT | FEE | TAKEN ON |
|---|---|---|
| Entry | 1% | your stake, once, when the position opens |
| Eat | 2% | the loot only, when you bank another trader's equity |
| Cash-out | 1% | your settled exit, incl. grace expiries |
Everything else is free. Deposits, withdrawals, the pari-mutuel ticks themselves, liquidations: zero fee. Swaps on the way in route through Aerodrome and pay Aerodrome's own pool fee to its LPs, not to us. There are no other knobs: every fee event goes through a single code path and lands in an append-only ledger.