How it works
Wins and losses
What happens at close - what you keep, what the protocol takes, and what you receive when you lose.
Winning closes
Your raw gain is the price move times your position size, divided by the entry price. Four steps turn it into what you are paid:
- Deadband. A sliver of the move does not count: the gain is measured as if the exit were 0.002% of the entry price less favourable (for a BTC entry at $100,000, that is $2). A smaller win pays nothing.
- Holdback. On a small move, inside a band set by the payout curve in force, the move is shortened a little further. The off-hours curve, used in quiet periods such as weekends, holds back a wider band than the standard one. A bigger move still always pays more.
- Impact scale. The remaining gain is multiplied by a factor below one that depends only on the size of the move: tiny moves keep little, larger moves keep more, never more than 90%.
- Win fee. 2% of the scaled gain is the fee. You receive your margin back plus the rest.
Closing through a frontend that the owner approved as a builder also costs a builder fee of 0.5% of the scaled gain; the app names no builder, so closes there pay none.
That is everything the protocol takes from a trade. None of these steps is a fee on your position size or a spread on the price: they apply to the gain, and only to gains. The fee is split between stakers (50%) and the team.
| Side and leverage | Long 100× |
|---|---|
| Margin / notional | $100 / $10,000 |
| Entry → exit | $100,000 → $100,500 (+50 bp) |
| Gain after the deadband | $49.8 |
| After the impact scale | $43.18 (86.7%) |
| Win fee | $0.86 (stakers get $0.43) |
| Paid to you on top of the margin | $42.31 |
Losing closes
Your raw loss is the price move times your position size, divided by the entry price, capped at your margin. Nothing is added on top: you get back the margin minus the loss. What happens to the loss depends on the LP:
- The payout queue is empty: a fee of 2% is carved out of the loss for stakers and the team, and the rest becomes LP cash.
- Claims are queued: no fee is charged, and the whole loss is set aside in the side bucket, which pays queued winners first.
For a position funded from your queued balance, the part of that claim the loss uses up is cancelled instead. A close that executes at or past your bust price is the exception to all of this: it settles as a liquidation and the whole margin is forfeited.
You also receive newly minted TOKEN for the loss, according to the emission rules: at launch, every dollar of mint basis mints 100 TOKEN while the tracked LP is below $2,000,000; once the supply-share rule is switched on, each dollar mints a fixed share of the current supply, and up to 5× that share for the part of a loss that refills an LP below zero. Every loss counts toward the tracked LP when it settles, also while the queue is active.
| Side and leverage | Long 100× |
|---|---|
| Margin / notional | $100 / $10,000 |
| Entry → exit | $100,000 → $99,700 (−30 bp) |
| Loss | $30 |
| Loss fee (carved out of the loss) | $0.6 (stakers get $0.3) |
| Returned to you | $70 |
| Mint basis / tokens minted (flat rate) | $29.4 / 2,940 |
Why it’s called asymmetric
Wins are scaled; losses are not. A loss pays the plain result and nothing more, while the cost of trading sits entirely on the winning side, in proportion to what you actually won. Asymmetric impact PnL has the exact formula.
Closing several positions
You can close up to 25 positions with one signature. They settle in the order listed, at the same price per market, and the result is credited at once. If the LP runs out of cash during the batch, the later wins in it are queued.