bellSet an opening price

Concepts

Markets and ladders

A market is one company before it lists, priced on a ladder of bands.

What defines a market

A market's company, feed, end date and fees are fixed when it is created; its authority can add bands to the top of the ladder while it trades. All of it is shown under Market terms in the app.

TermWhat it is
CompanyThe company whose opening price the market is on.
LadderContiguous price bands, each from a low edge to a high edge in USDC.
End dateThe date by which the company's first trade must be recorded.
Pyth feedThe Pyth price feed for the company's shares that sets the opening price.
Market authorityThe account that creates the market and its bands, records the time of the first trade and collects the market's fees.
Mint feeA percentage of the USDC locked when pairs are minted.
Settlement feeA percentage of each payout when tokens are redeemed.

The ladder

Bands are contiguous: each one starts where the band below it ends, and a market has up to 64 of them. Each band has its own UP and DOWN tokens, its own vault of USDC and two order books, one for UP and one for DOWN.

$40–45UP 4.86DOWN 0.14$45–50UP 4.25DOWN 0.75$50–55UP 2.96DOWN 2.04$55–60UP 1.53DOWN 3.47$60–65UP 0.58DOWN 4.42$65–70UP 0.17DOWN 4.83$40$45$50$55$60$65$70
Kestrel Orbital, the example market: the bar under each band is that band split at its UP price, UP printed solid from the left.

Market states

StateWhat happens
TradingMint, merge and trade. Lasts until the first trade is recorded or the end date passes.
End date passedNo first trade was recorded by the end date. The market settles at midpoints shortly after.
ListedThe first trade is recorded and the 30-minute average is under way. Trading continues; minting is closed.
SettledThe opening price is set. Every token redeems for its share of its band.
Settled at midpointsNo first trade was recorded by the end date, or the 30-minute average was not complete seven days after the first trade. Every UP and DOWN redeems for half its band.