Core Concepts
Positions & Collateral
Positions are exposure; collateral is value locked to guarantee payouts.
Positions
Users may hold both Long and Short Positions in the same Market. The MVP represents exposure with on-chain Position Accounts, not transferable position tokens.
Collateral types
- Available
- Collateral that belongs to a user and is not reserved by open Orders or attributed to Positions.
- Reserved
- Collateral set aside for open Orders so matchable orders cannot double-spend user custody.
- Position
- Collateral attributed to a specific Long or Short Position after Trade Execution.
Cost Basis
Cost Basis records how much collateral a user contributed to acquire Position Quantity. Settlement payout is based on Position Quantity and Resolution, not Cost Basis.