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

# LP money calculator

> Worked arithmetic for first LP: inventory, idle resolve, then informed flow.

Interactive inputs live in [`lp-calc.html`](/lp-calc.html) (open that file). This page is the same math written out.

Deposit `C = 100` collateral. Fees: protocol 1% + creator 0.5% + referrer 0.2% cash, LP 0.8% stays in the pool. Last-LP redeem therefore nets **98.3** of each winner token (cash cuts 1.7%, LP slice stays with you).

Do **not** use `C × p × (+1 if win else −1)`. That is a bet.

## 1. First LP split

`max = max(odds)`. For each named outcome `i`:

```
kept_i     = C × odds_i / max
sendBack_i = C − kept_i
```

Invalid: `kept = C`, `sendBack = 0`. Shares minted = `C`.

**70 / 30** (`max = 70`):

| Slot     | kept in pool | sent back to you |
| -------- | ------------ | ---------------- |
| Yes (70) | 100          | 0                |
| No (30)  | 42.86        | 57.14            |
| Invalid  | 100          | 0                |

You still own 100 Yes and 100 No in total (pool + wallet). Idle, any named winner pays 100 gross.

**50 / 50:** pool keeps 100 of each slot. Send-back is 0.

## 2. Idle resolve (nobody trades)

Winner tokens you own × 0.983.

| Seed  | Winner | Pool winner | Wallet winner | Net  | PnL vs 100 |
| ----- | ------ | ----------- | ------------- | ---- | ---------- |
| 70/30 | Yes    | 100         | 0             | 98.3 | −1.7       |
| 70/30 | No     | 42.86       | 57.14         | 98.3 | −1.7       |
| 50/50 | either | 100         | 0             | 98.3 | −1.7       |

The only leak is the **cash** fee on redeem. Odds do not change idle PnL.

The indexer LP lot marks **pool shares only**. On 70/30 if No wins, `redeemLp` shows \~42.1; the other \~56.2 is a share redeem on send-back.

## 3. Informed flow (buy 40 of the winner)

A buy splits collateral (minus cash fees, plus LP fee as extra complete sets), then pays out winner tokens from the pool. Send-back does not grow.

| Seed  | Winner | Pool winner left | Wallet winner | Net   | PnL vs 100 |
| ----- | ------ | ---------------- | ------------- | ----- | ---------- |
| 50/50 | Yes    | 72.26            | 0             | 71.03 | **−29.0**  |
| 70/30 | Yes    | 52.68            | 0             | 51.78 | **−48.2**  |
| 70/30 | No     | 31.15            | 57.14         | 86.79 | **−13.2**  |

Buying the **favorite** hurts LP more: that slot was already fully in the pool, so traders take it from your LP shares. Buying the **long shot** takes from a thin pool; most of that winner was already in your wallet.

## 3b. Traders lose (buy 40 of the loser)

They pay collateral, take the **wrong** outcome out. The AMM still splits almost that whole 40 into complete sets, so extra **winner** tokens stay with you.

| Seed  | Winner                  | Pool winner left | Wallet winner | Net    | PnL vs 100 |
| ----- | ----------------------- | ---------------- | ------------- | ------ | ---------- |
| 50/50 | Yes (traders bought No) | 139.32           | 0             | 136.95 | **+37.0**  |
| 70/30 | Yes (traders bought No) | 139.32           | 0             | 136.95 | **+37.0**  |
| 70/30 | No (traders bought Yes) | 82.18            | 57.14         | 136.95 | **+37.0**  |

Same 100 seed, 40 bought of the loser: you keep \~their stake minus cash fees. Pool vs wallet only changes *where* the winner tokens sit.

That is the house: right traders extract the winner from the pool; wrong traders donate complete sets and leave with trash.

## 4. What the product books

```
cost     = addedFunds
mark     = shares / supply × Σ named (reserve × price)
PnL      = realized on burns + mark − remaining cost
```

Later LP and mixed flow are different paths. The interactive form is [`lp-calc.html`](/lp-calc.html) in this docs folder — not in the SDK.

## Next

[How liquidity provision works](/guides/liquidity)