Profit settlement

The rules are adapted from the asymmetric impact model used by Papertrade, itself based on Rollbit’s market-impact model. They exist because meme token prices are cheap to push for a moment: without them, a trader could move a thin pool, close a leveraged position and drain the token’s pool. Each close records the rules it was settled with, and the explorer shows every step.

1. Deadband

The gain is measured as if the exit price were 0.5% of the entry price less favourable. A gain smaller than that becomes zero.

long:  exit used = exit − 0.5% × entry
short: exit used = exit + 0.5% × entry

2. Impact haircut

The remaining gain is multiplied by a scale that depends on how far the price moved. Small moves keep less; large moves keep almost all.

kept  = gain × scale
scale = (1 − baseRate) / (1 + term1 + term2)
term1 = 1 / (move × rateMultiplier)
term2 = referenceNotional / (1,000,000 × move × positionMultiplier)
move  = |exit used − entry| / entry

term2 uses a fixed reference size per token, not your position’s size, so the haircut is the same percentage for a $10 position and a $10,000 one: splitting a position into small ones changes nothing.

Every market uses these values today; per-token values are still being decided. With them, a move keeps about 87% of its gain at 0.5%, 89.5% at 3.5% and approaches 90% as the move grows.

3. Hold time

A win closed less than 30 seconds after opening keeps only part of the gain:

kept = gain × min(1, seconds held / 30)²

It makes pushing the price for a few seconds and closing worthless, and is short enough that most trades never meet it. While a winning position is younger than 30 seconds, it shows full profit in N s. Losses and liquidations are not affected.

4. Win fee

1% of what remains is the win fee, split between the team and the $TAU buyback. It is taken when the profit is actually paid: if a profit is paid in parts through the payout queue, 1% of each part.

A worked example

The same trade closed after 10 seconds keeps 11.1% at step 3 and pays $3.45.

Try it