📈Trading

Users predict the result of an event by trading shares of these market results. A complete set of shares is a set of shares consisting of one share for each possible valid result of an event. The complete set is created by the matching engine on MetaOracle's contract based on the need to complete the transaction.

Static Market

The events of multiple static markets constitute a sample space $\boldsymbol{S}$ of Mutually Exclusive Completely Exhaustive Events, i.e.

Definition 1: Given the set of mutually exclusive events $\mathit{\boldsymbol{E}=\left\{E_{1}, E_{2}, \ldots, E_{m}\right\}}$ consists of Mutually Exclusive Collectively Exhaustive Events, which form the sample space $\boldsymbol{S}$, i.e.,$\mathit{E_{1} \cup E_{2} \cup \ldots \cup E_{n}=\boldsymbol{S}}$, $\mathit{\sum P\left(E_{n}\right)=1}$, $\mathit{n=\{1,2, \ldots, m\}}$. For any $\mathit{E_{A} \neq E_{B}}$ and $\mathit{E_{A} \in \boldsymbol{E}}$, $\mathit{E_{B} \in \boldsymbol{E}}$, then $\mathit{E_{A} \cap E_{B}=\varnothing}$ and $\mathit{P\left(E_{A} \cap E_{B}\right)=0}$

Therefore, the set $\mathit{\boldsymbol{E}=\left\{E_{1}, E_{2}, \ldots, E_{m}\right\}}$ of events in MetaOracle's multiple static markets necessarily satisfies Definition 1.

Open Interest Statistics

For the created static market, the user will predict and speculate on the results of the events and form trades, which will cause the static market positions to continuously change and increase. MetaOracle's contracts will automatically calculate Open Interest.

Definition 2: Given the set of events $\mathit{\boldsymbol{E}=\left\{E_{1}, E_{2}, \ldots, E_{m}\right\}}$ satisfies Definition 1, then the open interest of a single static market is $\mathit{OI(\left.E_{n}\right)}$ and the total open interest of multiple static markets is $\mathit{OI(\boldsymbol{E})}$, i.e:

$$\mathit{\sum O I\left(E_{n}\right)=O I(\boldsymbol{E}) \quad n=\{1,2, \ldots, m\}}$$

And the open interest statistics are $\mathit{\boldsymbol{OI}=\left\{OI\left(E_{1}\right), OI\left(E_{2}\right), \ldots, OI\left(E_{m}\right), OI(\boldsymbol{E})\right\}}$

Predicted Probability (Static Market)

The continuous change and increase of open interest in multiple static markets will consequently generate a predicted probability of the event.

Definition 3: Given the set of events $\mathit{\boldsymbol{E}=\left\{E_{1}, E_{2}, \ldots, E_{m}\right\}}$ in a static market satisfies Definition 1, and given $\boldsymbol{OI}$, the predicted probability of any static market is $\mathit{P\left(E_{n}\right)}$, $\mathit{n=\{1,2, \ldots, m\}}$ and satisfies:

$$\mathit{P\left(E_{n}\right)=OI\left(E_{n}\right) / OI(\boldsymbol{E}) \quad n=\{1,2, \ldots, m\}}$$

Then the predicted reward multiplier for any static market is $\mathit{M\left(E_{n}\right)}$, $\mathit{n=\{1,2, \ldots, m\}}$ for:

$$\mathit{M\left(E_{n}\right)=P\left(E_{n}\right)^{-1} \quad n=\{1,2, \ldots, m\}}$$

Scenario 1: Assume that the set of events $\mathit{\boldsymbol{E}^{i}=\left\{E_{1}^{i}, E_{2}^{i}, \ldots, E_{m}^{i}\right\}}$ of multiple static markets created inside the platform satisfies Definition 1, along with the predicted probability $\mathit{P\left(E_{n}^{i}\right)}$，$\mathit{n=\{1,2, \ldots, m\}}$，and the predicted reward multiplier $\mathit{M\left(E_{n}^{i}\right)}$，$\mathit{n=\{1,2, \ldots, m\}}$. Assume that the set of events $\mathit{\boldsymbol{E}^{o}=\left\{E_{1}^{o}, E_{2}^{o}, \ldots, E_{m}^{o}\right\}}$ of static markets exist outside the platform satisfies Definition 1, and the predicted probability of this set of events is denoted as $\mathit{P\left(E_{n}^{o}\right)}$，$\mathit{n=\{1,2, \ldots, m\}}$，and the predicted reward multiplier $\mathit{M\left(E_{n}^{o}\right)}$，$\mathit{n=\{1,2, \ldots, m\}}$. If any $\mathit{E_{n}^{i} \equiv E_{n}^{o}}$，$\mathit{P\left(E_{n}^{i}\right) \neq P\left(E_{n}^{o}\right)}$，$\mathit{M\left(E_{n}^{i}\right) \neq M\left(E_{n}^{o}\right)}$，occurs in a normally tradable situation, then an arbitrage opportunity exists. Arbitrageurs in the market will arbitrage between multiple static markets in which $\mathit{\boldsymbol{E}^{i}}$ and $\mathit{\boldsymbol{E}^{o}}$ are located. In Scenario 1, the arbitrage behavior will eventually make any $\mathit{E_{n}^{i} \equiv E_{n}^{o}}$，$\mathit{P\left(E_{n}^{i}\right) \approx P\left(E_{n}^{o}\right)}$，$\mathit{M\left(E_{n}^{i}\right) \approx M\left(E_{n}^{o}\right)}$.

Dynamic Market

Each dynamic market in MetaOracle is an arbitrary event, which can be either a Mutually Exclusive Event $\mathit{E_{A} \cap E_{B}=\varnothing}$，$\mathit{P\left(E_{A} \cap E_{B}\right)=0}$，or a Non-Mutually Exclusive Event $\mathit{E_{A} \cap E_{B} \neq \varnothing}$, $\mathit{P\left(E_{A} \cap E_{B}\right) \neq 0}$. MetaOracle trading contracts maintain an order book for each dynamic market created on the platform and construct these orders in the order book on the principle of synthetic assets, which are market shares priced at predicted probabilities or predicted bonus multiples. These orders are market shares that are priced at predicted probabilities or predicted reward multiples. Anyone is free to trade orders, create a new order or fill an existing order at any time. Orders are matched by the automatic matching engine present in MetaOracle's Smart Contracts. If there is already a matching order in the order book, requests for buy and sell shares are immediately matched. If there is no match or the request is only partially fulfilled, the remaining part will be placed in the order book as a new order.

Orders will never be filled at a worse price than the user set limit, but may be filled at a better price. Unfinished and partially completed orders can be deleted from the order book by the order creator at any time. A fee is paid for each order placement transaction, which is discussed later in this section.

Most market shares are traded after market creation and before market settlement. All MetaOracle assets - including market shares, tokens, shares in dispute margins, and even ownership of the market itself - can be transferred at any time.

Dynamic Market Mechanism

Predicted probability (dynamic market)

The dynamic market relies on the order book to price the predict probability $\mathit{P_{d}\left(E_{n}\right)}$ and the predict incentive multiplier $\mathit{M_{d}\left(E_{n}\right)}$.

Definition 4: Given the set of events $\mathit{\boldsymbol{E}=\left\{E_{1}, E_{2}, \ldots, E_{m}\right\}}$ in a dynamic market in the platform, the predicted probability of any dynamic market is $\mathit{P_{d}\left(E_{n}\right)}$，$\mathit{n=\{1,2, \ldots, m\}}$; the predicted reward multiplier of any dynamic market is $\mathit{M_{d}\left(E_{n}\right)}$, $\mathit{n=\{1,2, \ldots, m\}}$. $\mathit{P_{d}\left(E_{n}\right)}$ and $\mathit{M_{d}\left(E_{n}\right)}$depend entirely on the pricing of the order book.

Scenario 2: Given the set of events $\mathit{\boldsymbol{E}^{i}=\left\{E_{1}^{i}, E_{2}^{i}, \ldots, E_{m}^{i}\right\}}$ in the dynamic market inside the platform, the predicted probability $\mathit{P_{d}\left(E_{n}^{i}\right)}$, $\mathit{n=\{1,2, \ldots, m\}}$ of any dynamic market and the predicted reward multiplier $\mathit{M_{d}\left(E_{n}^{i}\right)}$, $\mathit{n=\{1,2, \ldots, m\}}$. Assume that there is a set of events $\mathit{\boldsymbol{E}^{o}=\left\{E_{1}^{o}, E_{2}^{o}, \ldots, E_{m}^{o}\right\}}$ for the dynamic market outside the platform, the predicted probability is $\mathit{P_{d}\left(E_{n}^{o}\right)}$, $\mathit{n=\{1,2, \ldots, m\}}$, and the predicted reward multiplier is $\mathit{P_{d}\left(E_{n}^{o}\right)}$, $\mathit{n=\{1,2, \ldots, m\}}$. If any $\mathit{E_{n}^{i} \equiv E_{n}^{o}}$，$\mathit{P_{d}\left(E_{n}^{i}\right) \neq P_{d}\left(E_{n}^{o}\right)}$，$\mathit{M_{d}\left(E_{n}^{i}\right) \neq M_{d}\left(E_{n}^{o}\right)}$ occurs in a normally tradable situation, then there is an arbitrage opportunity. Arbitrageurs in the market will arbitrage between multiple dynamic markets in which $\mathit{\boldsymbol{E}^{i}}$ and $\mathit{\boldsymbol{E}^{o}}$ are located. In Scenario 2, the arbitrage action will eventually make any $\mathit{E_{n}^{i} \equiv E_{n}^{o}}$，$\mathit{P_{d}\left(E_{n}^{i}\right) \approx P_{d}\left(E_{n}^{o}\right)}$，$\mathit{M_{d}\left(E_{n}^{i}\right) \approx M_{d}\left(E_{n}^{o}\right)}$.

Synthetic & Margin

Users use crypto assets as collateral to back and lay synthetics (i.e. market shares priced at predicted probabilities or predicted reward multiples).

Definition 5: Given the collateral market price-$\mathit{CMP}$, collateral quantity-$\mathit{CA}$, collateral discount rate-$\mathit{DR}$, profit/loss-$\mathit{PnL}$, order opening initial margin-$\mathit{PIM}$, and order new opening lock-in margin-$\mathit{OOLM}$, the margin-$\mathit{Margin}$ and collateral ratio-$\mathit{cRatio}$ for issuing market shares by pledging encrypted assets to the user are:

$$\mathit{Magin=CMP×CA×DR+PnL }$$

$$\mathit{cRatio=\frac{Magin}{PIM+OOLM}=\frac{CMP×CA×DR+PnL}{PIM+OOLM}}$$

Please note that when $\mathit{cRatio<cRatio_{min}}$ (the minimum collateral ratio required by the platform), the liquidation mechanism will be triggered.

Order Book & AMM

The order book operates on a aggregated list of user buy and sell orders for a specific market share or a specific underlying, an approach that enables real-time spot purchases, with all orders aggregated in the order book, the holy grail of modern crypto asset trading. It also provides an order book as the trading interface. It is important to note that all settlements are calculated on Delta-based.

Liquidation

The liquidation system relies on an automated algorithm that scans and publishes all $\mathit{OI}$ currently on MetaOracle in real time, and all liquidators see this list of $\mathit{OI}$ at the same time, ranked by "liquidation distance", indicating the probability of liquidation or liquidation occurring within a predetermined short period of time.

When the user's $\mathit{cRatio<cRatio_{min}}$, the system announces the open interest and offers a certain discount to the liquidator through the use of trading robots. The rules are.

• First come first served for the highest priced inquiry.

• If they have the same price, first come, first served.

• The remaining assets will go to the liquidated user.