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Reward Calculation

Overview​

In HyperPredict, rewards are calculated based on the total stakes in each position (UP and DOWN), minus applicable fees. The reward distribution follows a pari-mutuel model, where winners share the pool from the losing side.

Fee Structure​

  • A flat 3% fee is applied to the total settlement amount.
  • If a user has a referrer linked, the fee is reduced to 2%.
  • Additionally, 1% of the user's winning settlement is paid to the referrer as a reward.

Calculation Steps​

  1. Determine Total Stakes: Calculate the total amount staked on both UP and DOWN positions.
  2. Calculate Fees:
    • Operating Fee: 3% of the total settlement amount (2% if referred).
    • Referral Fee: 1% of the winning settlement amount (if applicable).
  3. Compute Reward Pool: Subtract the total fees from the total stakes to determine the reward pool.
  4. Distribute Rewards: Winners receive a share of the reward pool proportional to their stake in the winning position.

Example​

  • Total Stakes: 200 USDC (100 USDC UP, 100 USDC DOWN)
  • Operating Fee: 4 USDC (2% of 200 USDC)
  • Referral Fee: 2 USDC (1% of 200 USDC, if referred)
  • Reward Pool: 196 USDC (200 - 4)
  • UP Position Wins:
    • Each UP bettor receives a share of the 196 USDC based on their stake.