Capital Efficiency
Capital efficiency changes how collateral is locked when trading both sides of the same market. Instead of locking funds per bet, collateral is locked only for the maximum possible loss across opposing positions. When risk is reduced, any excess collateral is released automatically.
This allows capital to be reused when hedging, trading in and out, or quoting both sides of a market.
How Capital Efficiency Works
All filled bets on opposing outcomes within the same market are evaluated together
The worst-case loss across those positions is calculated
Only that amount remains locked as collateral
Any collateral no longer needed is refunded immediately
This works for: Single market orders, limit orders, partial fills, pre-match and live markets.
Example
A market order is filled for $25 at 1.96 on Side A
A market order is filled for $25 at 1.95 on Side B
Because only one side can lose:
$50 counts toward traded (staked) volume
$1.33 remains locked
$48.66 is refunded
Trading In and Out
With capital efficiency, you can enter and exit positions within the same market without locking new capital each time.
This lets you:
Reduce risk without closing the market
Re-enter at new prices
Trade price movement instead of holding to settlement
In practice, this works like margin trading: you can move in and out of positions, hedge, and re-trade using the same bankroll, as long as your worst-case loss is covered.
Escrow requirements are recalculated on each order fill based on current worst-case exposure, independent of subsequent line movement or number of bets on the market.
Why It Matters for Market Makers
Quote both sides of a market with less locked capital
Provide continuous liquidity across outcomes
Deploy larger notional size with the same bankroll
Scale market making without repeated deposits or manual capital management
Important Note on Cash Outs
Capital-efficient refunds and cash-outs cannot occur in the same market group. Once a refund has been issued, cash-outs are disabled for that market (and vice versa) to ensure correct risk accounting.
Check out the latest information in our API docs
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