Payouts & Multipliers

JuicyPerp battle pools follow a peer-to-pool payout approach with two sides ("UP" and "DOWN"). The liquidity entered on each side determines the potential payouts. After the Battle Pool expires:

• Users on the correct side of the price movement share the entire pool's liquidity among themselves.

• Users on the incorrect side receive no payout.

Payout distribution according to pay-ins

The individual payout and multiplier of a successful battle is calculated in the following way:

$$\text{Payout} = \frac{\text{Total Liquidity of the Pool*}}{\text{Liquidity on winning side*}} \times \text{Entry amount of battle*}$$

$$\text{Multiplier}_{\text{battle}} = \frac{\text{Payout}}{\text{Entry amount of battle}}$$

* net of fees

Floating Payouts

Users can enter battle positions until a battle pool's pay-in time is over, thus the liquidity amount on each pool side can change until a pool's pay-in time is over. Therefore payouts of a battle pool can change until the pay-in phase is over.

Refund cases

Users can reclaim their initial entry minus fees after the pool expires if:

1. The Start and End price of the battle pool are equal

2. There is liquidity on only one side of the battle pool after the pay-in phase ends

Example Payout Scenario (incl. Fees)

• A. enters 0.1 WETH on the UP direction, directly after the pay-in opens at a 1.5% fee rate

• B. enters 0.05 WETH on the UP direction, at a 2% fee rate

• C. enters 0.05 WETH on the DOWN direction, also at a 2% fee rate

Abbreviation	Meaning
NFL_Pool	Total Net of Fees Liquidity (NFL) of the entire battle pool = The liquidity that was entered in the battle pool minus the fees charged on the entered amount.
NFL_X	Net of Fees Liquidity user X provided in the battle pool.

$$\text{NFL}_{\text{Pool}} = \text{NFL}_A + \text{NFL}_B + \text{NFL}_C$$

$$\text{NFA}_A = \text{Entry}_A \times (1 - \text{Fee}_A)$$

$$\text{NFL}_{\text{pool}} = (0.1 \times 0.985 + 0.05 \times 0.98 + 0.05 \times 0.98) = 0.1965 \, \text{WETH}$$

Scenario 1) UP side wins the battle pool

$$\text{Payout}_A = \frac{\text{NFL}_{\text{Pool}}}{(\text{NFL}_A + \text{NFL}_B)} \times \text{NFL}_A$$

$$\text{Payout}_A = \frac{0.1965\text{ WETH}}{(0.1 \times 0.985 + 0.05 \times 0.98)} \times (0.1 \times 0.985) = 0.1312 \, \text{WETH}$$

$$\text{Payout}_B = \frac{0.1965\text{ WETH}}{(0.1 \times 0.985 + 0.05 \times 0.98)} \times (0.05 \times 0.98) = 0.0653 \, \text{WETH}$$

$$\text{Payout}_C = 0 \text{ WETH}$$

Scenario 2) DOWN side wins the battle pool

$$\text{Payout}_A = 0 \text{ WETH}$$

$$\text{Payout}_B = 0 \text{ WETH}$$

$$\text{Payout}_C = \frac{0.1965\text{ WETH}}{(0.05 \times 0.98)} \times (0.05 \times 0.98) = 0.1965 \, \text{WETH}$$

Explaining Fees on the next page...