pull down to refresh
We have a standard LMSR, no deviations of any kind. I will answer in details tomorrow. Partied too hard - its weekend.
What value of 𝑏 are you using in the current FIFA market?
b = 100k sats for FIFA market fixed - we may increase the b based on trading activity. But the current b = 100k.
Is buying 100 YES shares for Team A equivalent to buying 100 NO shares for all other teams proportionally? Or are YES/NO shares treated as separate instruments with different mechanics?
NO - its inverse. Ex: if you're buying 100 yes at 0.20 sats for Team A, and if you're betting on Team A - NO. it'll be 0.80 sats (1 - 0.20 = 0.80). We interpret NO as buying YES on all the team except Team A. In other word, you're buying YES on all the team except Team A. Standard LMSR again.
Hope that helps, otherwise I'm happy to explain more later.
reply
reply
Normally its fixed till end of market. Some exception in edge case. But treat is as fixed.
reply
reply
No - it's different for every market. This one is 30k.
reply
C(q) = b \cdot \ln\left( \sum_{i=1}^{n} e^{q_i / b} \right)Or is it modified in any way (e.g., using a different log base, normalization constants, or weighting)?q_i(quantity of shares) initialized from probability? I’m initializing shares using:q_i =b \cdot ln(p_i)wherep_iis the initial market-implied probability (e.g., 24% means 0.24). Is this what you use? Or is it something like:q_i = b \cdot ln(p_i/p_0)Or any other transformation?