🌐Trading on Libera
Trading Systems
Beginner Mode: Pool Trading (LONG/SHORT)
How It Works
Pool Aggregation: Your stake joins everyone else who shares your directional view (LONG or SHORT). Opposite views accumulate in the opposing pool.
Entry Recording: System timestamps your entry with the exact asset price at that moment. This becomes your personal entry point and is critical for weighted distribution.
Entry Fee: 0.25% fee charged on your stake amount when entering position.
Pool Dynamics: Watch both pools grow during the market duration. Larger pools indicate stronger consensus; smaller pools indicate contrarian positions.
Settlement: Winner-takes-all. The winning pool receives 99% of the losing pool (1% settlement fee). Distribution is based on entry-weighted performance—not equal distribution.
Entry-Weighted Distribution
Your reward depends on both stake size and entry timing performance:
Step 1: Individual Performance Calculation
Individual Win Percentage = (Closing Price - Your Entry Price) / Your Entry Price
This measures how much movement you captured based on your entry timing
Step 2: Weighted Stake Calculation
Weighted Stake = Your Net Stake × Individual Win Percentage
Higher performance percentage = larger weighted stake
Step 3: Distribution Calculation
Your Share = Available Winnings × (Your Weighted Stake / Total Weighted Stakes)
Available Winnings = Losing Pool × 99% (1% settlement fee deducted)
Step 4: Total Return
Total Return = Your Share + Original Net Stake
Complete Example (Ethereum Weekly Market)
Market Setup:
Opening: Sunday 23:59 UTC at $3,500
Closing: Next Sunday 23:59 UTC at $3,780
Result: LONG wins (price increased)
SHORT pool loses: $32,000
Settlement fee (1%): $320
Available for distribution: $31,680
LONG Pool Winners (all paid 0.25% entry fee):
User A - Entered Monday at $3,400 with $1,000
Entry fee: $2.50
Net stake: $997.50
Individual performance: ($3,780 - $3,400) / $3,400 = 11.18%
Weighted stake: $997.50 × 11.18% = $111.51
User B - Entered Wednesday at $3,600 with $1,000
Entry fee: $2.50
Net stake: $997.50
Individual performance: ($3,780 - $3,600) / $3,600 = 5.00%
Weighted stake: $997.50 × 5.00% = $49.88
User C - Entered Friday at $3,750 with $1,000
Entry fee: $2.50
Net stake: $997.50
Individual performance: ($3,780 - $3,750) / $3,750 = 0.80%
Weighted stake: $997.50 × 0.80% = $7.98
Total Weighted Stakes: $111.51 + $49.88 + $7.98 = $169.37
Distribution:
User A: $31,680 × ($111.51 / $169.37) = $20,858 + $997.50 = $21,855.50 (2,086% ROI)
User B: $31,680 × ($49.88 / $169.37) = $9,329 + $997.50 = $10,326.50 (933% ROI)
User C: $31,680 × ($7.98 / $169.37) = $1,493 + $997.50 = $2,490.50 (149% ROI)
Key Insight: User A's Monday entry timing resulted in approximately 8.8x higher returns than User C's Friday entry despite identical stakes. Entry timing dramatically impacts returns in Beginner Mode.
Beginner Mode Advantages
Simple interface: just pick LONG or SHORT
No slippage: enter at exact current price
Rewards timing skill through weighted distribution
No need to understand order books
Eliminates emotional trading (locked positions)
Low 0.25% entry fee
Beginner Mode Limitations
No early exit—locked until settlement
Returns depend on other participants' timing
Cannot control exact profit/loss before settlement
Must wait entire market duration for results
Standard Mode: Order Book Trading (YES/NO)
The Share-Based System
Binary Outcome Shares:
YES shares: Pay $1.00 if asset price increases, $0 if it doesn't
NO shares: Pay $1.00 if asset price decreases, $0 if it doesn't
Price = Implied Probability:
62¢ YES share means market believes 62% chance of increase
38¢ NO share means market believes 38% chance of decrease
YES price + NO price ≈ $1.00
Return Calculation:
Buy YES at 62¢, if wins: profit 38¢ (61% ROI)
Buy YES at 25¢, if wins: profit 75¢ (300% ROI)
Buy NO at 35¢, if wins: profit 65¢ (186% ROI)
Trading Fees:
0.25% fee on each trade (buy or sell)
1% settlement fee deducted from winnings
Example: Buy 1,000 shares at 60¢ = $600 + $1.50 fee = $601.50 total
Dynamic Share Creation
Shares are minted when opposing orders match such that prices sum to $1.00:
Minting Example:
User A wants to buy YES at 60¢
User B wants to buy NO at 40¢
60¢ + 40¢ = $1.00 ✓
System mints 1 YES share to User A, 1 NO share to User B
Both deposit collateral ($1.00 total locked)
0.25% trading fee charged to both users
Winner receives $1.00 at settlement minus 1% settlement fee
No Fixed Supply: Shares created on-demand. Every share pair requires $1.00 collateral locked in smart contracts.
The Order Book
Market Example: "Will Bitcoin price increase in the next hour?"
SELL ORDERS (Asks)
88.0¢ → 4,005 shares → $3,524 total value
88.6¢ → 4,557 shares → $4,038 total value
89.2¢ → 5,300 shares → $4,728 total value
Current Market Price: 88.0¢ YES
BUY ORDERS (Bids)
87.9¢ → 4,605 shares → $4,048 total value
87.5¢ → 11,776 shares → $10,304 total value
87.2¢ → 12,855 shares → $11,209 total value
Order Types:
Market Orders: Execute immediately at best available price (may have slippage, 0.25% fee)
Limit Orders: Execute only at your specified price or better (0.25% fee when filled)
Stop Loss Orders: Trigger market order when price hits threshold (0.25% fee on execution)
TWAP Orders: Break large orders into small chunks over time (0.25% fee per chunk)
Liquidity and Slippage
Slippage: Difference between expected and actual fill price on large orders.
Example - $10,000 Market Buy Order:
Expected: 88.0¢
Actual fills: 4,005 shares at 88.0¢, 4,557 at 88.6¢, rest at 89.2¢
Average fill: 88.7¢
Slippage: 0.7¢ per share = $70 total
Trading fee: $10,000 × 0.25% = $25
Total cost: $10,000 + $70 slippage + $25 fee = $10,095
Minimize Slippage:
Use limit orders (wait for market to come to you)
Use TWAP for positions over $5,000
Trade high-liquidity markets
Avoid market orders on large positions
Consider longer timeframe markets for better liquidity
Liquidity Provision: Earn fees by placing two-sided limit orders:
Bid: 61.5¢ / Ask: 62.5¢
When both fill, earn 1¢ spread per share
Pay 0.25% fee on each side but capture spread
Risk: Price moves before both sides fill
Standard Mode Advantages
Precise price control with limit orders
Flexible exit: trade anytime before expiration
Advanced order types (stop loss, TWAP)
Can profit from price movements without waiting for settlement
Professional trading tools
Earn fees as liquidity provider
Standard Mode Limitations
Higher complexity than Beginner Mode
Slippage risk on large market orders
Requires understanding order book mechanics
Need to actively manage positions
Steeper learning curve
0.25% trading fee + 1% settlement fee
When to Use Each Mode
Use Beginner Mode When:
New to prediction markets
Want simple LONG/SHORT betting
Prefer entry-weighted performance rewards
Don't need intramarket trading
Want minimal complexity
Willing to lock positions until settlement
Prefer single entry fee structure
Use Standard Mode When:
Experienced trader
Want precise price control
Need advanced order types
Want to trade price movements before expiration
Comfortable with order book mechanics
Entering large positions (use TWAP)
Want to trade multiple timeframes actively
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