Core Concepts

Payoff Curves

How LIME converts observed values into payout ratios for Long and Short Positions.

Linear MVP

The MVP supports a linear payoff curve. The resolved value is mapped into a ratio between 0 and 1, clamped by the Market bounds.

ratio = (value - lowerBound) / (upperBound - lowerBound)

Future curves

The product model preserves room for sigmoid, step, convex, and concave payoffs, but those curves are post-MVP concerns.

Payout symmetry

For every unit of Quantity, Long payout plus Short payout equals the same Quantity. Collateral funds that relationship; Cost Basis is not the payout basis.