LP calculator

You deposited 100 USDC as first liquidity on “Will ETH be above $5,000 at year end?” This page walks the arithmetic: how inventory is split, what happens if nobody trades, and what happens if someone buys 40 of the winner. The favorite’s full stack stays in the pool. Less likely answers refund the extra tokens to your wallet. You are not placing a 70/30 bet. Do not use deposit times odds times win or lose. Interactive inputs live in lp-calc.html (open that file). This page walks the same math in prose. Deposit 100 collateral (C = 100 in the formulas below). Fees: protocol 1% + creator 0.5% + referrer 0.2% as cash; the LP 0.8% stays in the pool. A last-LP redeem therefore nets 98.3 of each winner token (cash cuts take 1.7%; the LP slice stays with you).

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. Traders who are right take winner tokens out of the pool. Traders who are wrong leave complete sets behind and take the losing answer.

4. What the product records

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 in this docs folder — not in the SDK.

Get started

How it works

Market

User

Outcome

React

Helpers

1. First LP split

2. Idle resolve (nobody trades)

3. Informed flow (buy 40 of the winner)

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

4. What the product records

Next

​1. First LP split

​2. Idle resolve (nobody trades)

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

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

​4. What the product records

​Next

1. First LP split

2. Idle resolve (nobody trades)

3. Informed flow (buy 40 of the winner)

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

4. What the product records

Next