Example Gameplay (EZ Mode)

Sample Mission Details

• Market: ETH-LONG
• Leverage: 10x
• Mode: EZ
• Duration: 1 hour
• Entry price: $10 per entry
• Total entries available: 10,000
• Start time: 12:00 PM UTC
• Fee: 1%

Mechanics

Let's say 100 players each register 100 entries ($1,000 margin each). At the start time of the mission, a position is opened with the available margin. These can be calculated as:

$margin=entry\_price \times entries * (1-fee)$

$margin=\$10 \times 10,000 \times (1-0.01) = \$99,000$

$position\_size=margin \times leverage$

$position\_size=\$99,000 \times 10 = \$990,000$

Positive PnL

In this case, we will assume that the price goes up by 1% by the end of the mission.

The PnL of the position will be:

$pnl=position\_size \times price\_change$

$pnl=\$990,000 \times 1\% = \$9,900$

$distributable\_pnl=pnl - fee$

$distributable\_pnl=\$9,900 - \$1,000 = \$8,900$

The $8,900 is then allocated to players based on an on-chain selection system, according to the distribution curve specified. Here's an example of how the distribution curve might look:

If a player wins a tier 1 reward, they receive $3,560 from the PnL as well as their original margin of $1,000. This means they would have a total of $4,560 (+356% ROI). Players are able to win multiple tiers of rewards, and the rewards are cumulative.

Players who does not receive a reward still receive their original margin of $1,000. As a result, even though they lost the selection process, they still break even including accounting for fees.

tl;dr - One lucky player (1% chance) earned 356% ROI with 1% positive price movement, while everyone else at least broke even.

Negative PnL

In this case, we will assume that the price goes down by 1% by the end of the mission.

The PnL of the position will be:

$pnl=position\_size \times price\_change$

$pnl=\$990,000 \times -1\% = -\$9,900$

$position\_value=margin + pnl$

$position\_value=\$99,000 - \$9,900 = \$89,100$

Here there is a loss to distribute equally to all players according to the number of entries registered, with no selection mechanism.

$value\_per\_entry=\frac{position\_value}{total\_entries}$

$value\_per\_entry=\frac{\$89,100}{10,000} = \$8.91$

Each player in our example had 100 entries, so each player will receive:

$value\_per\_player=\$8.91 \times 100 = \$891$. Each player made a loss of $91 (-10.9% ROI)