Market probability & depth simulator grounded in @Polymarket contract telemetry
Calculated return on a $1,000 YES position bought at current market price ($0.200).
| Trader | Side | Amount | Avg Price | Prob Impact |
|---|
In Hanson's Logarithmic Market Scoring Rule, the marginal probability equals the logistic sigmoid of outstanding share differences scaled by liquidity parameter b. When a trader executes a twenty-five hundred dollar buy order on YES, the automated market maker purchases new shares along the exponential curve. Because every incremental share costs more than the last, price slippage occurs, driving the implied market probability upward from twenty percent to twenty-six point one percent. Adjusting the liquidity parameter b alters market elasticity: higher liquidity flattens the curve to dampen slippage, while lower b creates rapid price discovery.