How it works
THE TRUTH TABLE
| ROCK | takes a cut from | SCISSORS | proportional to SCISSORS’s stack |
| PAPER | takes a cut from | ROCK | proportional to ROCK’s stack |
| SCISSORS | takes a cut from | PAPER | proportional to PAPER’s stack |
The cut is taken on every swap, whichever direction it goes. The hook never reads the side of the trade: buying and selling do exactly the same thing.
LEVY PER SWAP
By imbalance, biggest stack over smallest.
| Imbalance up to | Levy |
|---|---|
| 1.5 × | 0.2 bp |
| 3 × | 0.5 bp |
| 6 × | 1 bp |
| 12 × | 2 bp |
| beyond 12 × | 4 bp |
SWAP FEE
Same in both directions. The cap is engraved.
| Imbalance up to | Fee |
|---|---|
| 1.5 × | 0.8 % |
| 3 × | 1.2 % |
| 6 × | 1.8 % |
| 12 × | 2.6 % |
| beyond 12 × | 4 % |
Fee routing per swap: 45 % to the smallest camp’s stack, 30 % to the pot, 25 % burned.
WHY THERE IS NO WINNING STRATEGY
Dominating a camp finances your own fall. The levy is proportional to the loser’s stack: the bigger you are, the more you pay the camp that beats you, and the faster it grows into the camp that replaces you.
Hedging gives exactly zero. Hold all three camps and the three cuts flow through your own positions: what one takes, another loses, to the unit. Being everywhere is being nowhere.
Scoring is reserved for the smallest camp. The moment people follow you into it, it stops being the smallest and you stop scoring. The protocol pays solitude, then punishes company.
There is no winning strategy. That is a theorem, not a promise.