Sports Markets Liquidity Providing

Introduction to Sports Markets Liquidity Providing

Thales' design involves a singular counterparty liquidity pool in which anyone in the world with an internet connection can deposit collateral into and become exposed to the performance of the pool. Thales SportsAMM contract uses the liquidity from the pool to collateralize on-demand trades executed on Thales Sports Markets. The performance of the pool is based on the presence of fixed price spreads between exclusive outcomes of sports games.

This singular pool architecture provides liquidity to many dedicated sports game markets with per-game risk management. This means that the global risk of the liquidity pool against the traders is minimized via normal distribution of per-game risk, allowing the pool to have a constant long-term positive performance due to the presence of odds spread. The higher the sample size of global users taking various positions on sports games, the greater the performance of the Thales pools.

Mechanics of Providing Liquidity

The deposited USD is used to collateralize the Sports AMM and Parlay AMM on a weekly round basis. A single game market can only belong to one round, which is defined based on the maturity date of the market (game end). When a round ends, the AMM's performance from all markets in that round is summed up, and allocated to all liquidity providers proportional to their share of the pool.

• Each LP-ing round lasts 7 days.

• User can Deposit at any time during any round. The deposited funds will be utilized as collateral in Sports AMM and Parlay AMM starting with the next round from time of Depositing.

• The minimum deposit is 100 USD for the first deposit. Existing depositors are not subject to a minimum amount.

• Deposited funds roll over to next round automatically until a Withdrawal is signaled.

• User can signal a Withdrawal at any time during any round. Withdrawals are limited to no less than 10% of your total deposit.

• The funds that are signaled for Withdrawal will be unlocked at the start of the next round from time of signaling.

If you signal a Withdrawal, your funds will still be exposed as collateral for the duration of the ongoing round and will only be removed as collateral when the round ends.

Providing liquidity exposes you to various risks including potential losses due to users winning in trading as well as smart contract security risks. Please make sure you understand these risks before depositing.