This document discusses scalar markets, which have payouts correlated to the final value rather than being assigned entirely to one outcome. It notes scalar markets have a number of ticks equal to the range divided by the tick size. The sum of payout numerators must equal the number of ticks. It provides examples of order fills in scalar markets and how payouts are reported, including market details like ranges, tick sizes, and payout distributions.

1. Scalar Markets
How I learned to stop thinking about num ticks
and love the payout numerators

2. Markets
Binary:
Categorical:
Scalar:
No or Yes. Payout goes entirely to
one outcome.
Multiple labeled outcomes.
Payout goes entirely to one
outcome.
Short or Long. Payout is
correlated with the final value:
Long paid more when higher.
Short paid more when lower.

3. Num Ticks
● Range = Max Display Price - Min Display Price
● Tick Size = Smallest unit of price movement
● Num Ticks = Range / Tick Size
● In contracts this (and everything else) is in
attoeth (wei)
● Complete Sets cost num ticks attoeth
● The max price in trading for a market is num
ticks attoeth
● The sum of payout numerators must equal num
ticks

4. Trading
Order Fill Result
Buy 500 shares at 2500 (use tokens) Sell 500 shares at 2500 (use tokens)
-1250000 attoeth
+500 long shares
-3750000 attoeth
+500 short shares
Buy 500 shares at 2500 (use shares) Sell 500 shares at 2500 (use tokens)
+3750000 attoeth
-500 short shares
-3750000 attoeth
+500 short shares
Buy 500 shares at 2500 (use tokens) Sell 500 shares at 2500 (use shares)
-1250000 attoeth
+500 long shares
+1250000 attoeth
-500 long shares
Buy 500 shares at 2500 (use shares) Sell 500 shares at 2500 (use shares)
+3750000 attoeth - fees
-500 short shares
+1250000 attoeth - fees
-500 long shares
Num Ticks = 10000
Shares = Outcome 1 Shares

5. Reporting Payouts
Market Resolution Payout
Price of ETH
Range: 10 - 3000
Tick Size: 1
2500 [500, 2490]
Long Blockchain Corp.
Range: 0 - 20
Tick Size: .01
0.5 [1950, 50]
Addition to National Debt
Range: 500 billion - 2 trillion
Tick Size: 1 billion
1 trillion [1000, 500]

6. Questions