How Proceeds Are Calculated

1. Equal Distribution of Proceeds

When a trader's prediction aligns with the Gap Index outcome, the total investment from the unsuccessful side is distributed equally among the successful side, proportional to their initial investment in the contract.

2. Profit Transparency

GFEX ensures that all settlement amounts are calculated via smart contracts, guaranteeing fairness and eliminating any disputes.

3. Example: Fee Application and Profit Distribution

To illustrate how fees and profits are applied in GFEX:

• Assume a single investment room with 200 users, each investing $50 in USDC. The total investment pool equals $10,000.

• Let’s consider a scenario where 80 users elect "Widen" and 120 users elect "Narrow" for the Gap Index:

• A 1% transaction fee is deducted from the total investment pool, leaving $9,900 (Widen $3,960 and Narrow $5,940).

• Thereafter, the Gap Index widens, making the 80 "Widen" users successful, while the 120 "Narrow" users are unsuccessful.

• Profit Distribution occurs as follows:

  • An additional 3% success fee is deducted from the unsuccessful pool ($6,000), amounting to $180, leaving $5,760 for distribution.

  • The Final Distribution Pool is $9,720.

  • The 80 successful "Widen" users will share the Final Distribution Pool of $9,720 pro rata, subject to their respective investment amounts.

  • Each successful user will receive $121.5, calculated as $9,720/80, resulting in a profit rate of 143%.