ECONOMICS AND FEES
Pari-mutuel, peer against peer, in kind. Every token a winner collects is a token 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 micro-unit 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.
YOUR STAKE STAYS A STOCK
Positions hold tokens, not dollars. The tick sizes every transfer in dollars, then carries it out in the tokens themselves, counted in integer micro-units: when a TSLA staker loses to a PLTR staker, part of the TSLA moves to the PLTR staker's position. The dollar figures on your cell are your tokens priced live, so your stake's value also follows its stock. Cash out and you get the tokens back, possibly a mix of the stocks you won.
Each stock token is priced from its own Uniswap pools on Robinhood Chain, read against USDG in one block and weighted by liquidity. When a stock cannot be priced, the pools that hold it freeze (nobody there gains or loses) and entries staking it are refused until its price is back.
THE 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 |
| Liquidation | floor | what your position still holds at its floor: 5% of your stake |
An eaten position worth less than twice its floor pays its floor first, as its liquidation would have; the eater's 2% applies to the rest.
Everything else is free. Deposits, withdrawals and the pari-mutuel ticks themselves: zero fee, gas aside. There are no other knobs: every fee event goes through a single code path and lands in an append-only ledger.