The house

House(opens with the program)

[ Fig. 1 ]
Schematic
What the house is

The house takes the other side of every trade. It starts at zero, grows only from losses and donations, and belongs to the traders who lost to it, through paper.

It pays winners from the cash it holds. When it is short, the part it cannot pay goes into the queue line below and is paid in order as new losses arrive. Net equity is cash minus what the queue is owed, so it can be negative: that is the queue doing its job.

The house and the queue line
The house's rules

Trading opens soon. Once the program is deployed every number on this page is read from it, live.

Starts at
$0
Fees to paper
50 %
Flat paper rate
100 per $1
Flat below
$25,000
Tail scale
$1,500,000
Reserve cap
$75,000
The queue line
first in, first paid
[ Fig. 2 ]
Schematic

Solid sheets are paid, outlined sheets wait. The oldest claims sit on the right and are paid first; a later claim receives nothing until every earlier one is whole.

[ Fig. 5 ]
Hover to read
Paper

Every loss mints paper to the trader who lost. 100 paper per $1 while the house holds less than $25,000; above that the rate falls with the square of S / (S + H) and never comes back up.

Paper cannot be moved or sold. It earns half of every fee charged and everything swept above the $75,000 reserve cap, through an accumulator that anyone can settle.

Paper and the mint curve