FoX user guide
FoX is an experimental platform from the interns of Jupiter, that allows traders to trade tokenised odds.
Note. This is an unaudited intern project. Please read this user guide carefully and ask any questions in #fox channel of Jupiter’s discord before you put any money in.
You can find our alpha platform at https://fox.jup.ag along with the whitepaper.
There are 3 key highlights for FoX:
- Floating Odds: Odds will adjust dynamically according to market demand
- Tokenised Positions: Your position is a SPL token held by you, not the program, making it fully composable with other DeFi platforms.
- Fully integrated with Jupiter: Buy from and sell* into whatever other token you want
*On FoX you can only claim your payout when the market has been resolved with an outcome. However, anyone can set up external pools on AMMs and you can sell when those are present. We recommend checking jup.ag for the best available rates.
Buying tokens
You can buy direct from Fox or from Jupiter Aggregator (Buy Yes || Buy No), which also searches external pools available to give you the best price. If you do buy from Jupiter, do check the payout on FoX before exchaniging.
- Choose a side you want to bet on – Yes or No
- Get a quote for your budget
- Check the quote given. You can change the input and see how it affects your cost and payout.
- Track your potential payout based on your holdings after you purchased, if you win. This changes as more people buy in. If you lose, your tokens will be worth zero.
Additional notes:
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Cost: On FoX, tokens are only sold in whole units, with no fractional amounts. We will find the maximum amount of tokens you can buy with the USDC that you input. In the image above, the user enters $10. For that, we are offering 25 No tokens at a total cost of $9.897.
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Slippage: Slippage is applied to the input amount, and it will determine the maximum possible cost of the tokens if the market shifts when you’re making your purchase. E.g. You request a quote 10 USDC at 5% slippage. The maximum possible cost of the 25 tokens will be 10.50 USDC.
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Price Impact: When buying into a market, you will incur a price impact that tells you how much your purchase has shifted the final price in the market. Price impact may be high when buying into a market with low liquidity, or when buying a large amount. Look at your start price, and average price and overall price impact to get a sense of your purchase.
Your winning payout may be more than $1 or less
Unlike prediction markets which have constant payouts of 1 USDC per share in prediction markets, FoX doesn’t have constant payouts. The payout is based on the amount in the pot after creator fees divided by the supply of the winning side which could be more or less than 1 USDC per token.
\frac{Amount In Pot - Creator Fees}{Number of winning tokens}
The payout will change as more people buy into the market. When someone buys the opposite side, your potential payout will increase. When someone buys the same side as you, this dilutes the market and decreases your potential payout.
If you lose, you will not be able to claim anything from the market.
Event Resolutions
There are 3 potential outcomes for our markets:
- Yes
- No
- Refund (In the event that there is an ambiguous outcome, creators can choose to refund buyers. In this scenario, the pot is split evenly across both ‘Yes’ and ‘No’ token buyers. You will not get back your original cost and you might make or lose money)
In particular for this test market,
- We will pause the market on 5 Nov 2024 while voting for elections is ongoing and odds can no longer be bought from the market. However, you will still be able to buy and sell tokens from external AMMs and platforms if they exist.
- This market is resolved by us. When it is resolved, you will be able to claim your winning tokens on the site.