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NYBU's FAQ

This is a collection of NYBU's frequently asked questions.

What assets are currently available for trading ?​

  1. Bitcoin (BTC) - 5 minute candles
  2. Ethereum (ETH) - 1 minute candles

Is NYBU Fully Decentralized?​

NYBU is not fully decentralized, but we are 95% on our way there. The only element of NYBU that is centralized is the oracle. If you dont not know an oracle is an entity that describes the real world to the blockchain. In our case, the oracle is the entity that tells NYBU's smart contract what is the result of a certain round.

We realize that centralizing the oracle might raise some questions, so here are some points on why we did that:

  1. Often, with decentralized oracles, you get aggregated price feeds, which we believe are not optimal. Checkout this section to learn why.

  2. Ability to offer a wide range of assets to predicte on. Decentralized oracles do not have a wide selection of asset data to build upon (real-time stock data for example). With a centralized oracle, we can offer any kind of asset that we want.

  3. A centralized oracle will drastically decrease the gas overhead needed to run a complicated contract like NYBU. This reduction is achieved by only writing data to the contract when needed, on demand, and not having to constantly sync with the decentralized oracle, burning a ton of gas in the process.

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In summary, We are on our way to full decentralization, but for this alpha phase, we use a centralized oracle.

What are the rules for setteling a round ?​

  • If you make a prediction (Bull / Bear) on the next candle and the next candle closes in the direction that you predicted, then you win the payout + your original principle.
  • If you make a prediction (Bull / Bear) on the next candle and the next candle closes in the opposite direction of your prediction, you lose your original principle.
  • If you make a prediction (Bull / Bear) on the next candle and the next candle has no lateral movement (candle's open price equals candle's close price), you get refunded your original principle.
  • If you make a prediction (Bull / Bear) on the next candle and no one took the opposite position (one sided round), you get refunded your original principle.

How is the payout calculated?​

  • Payout Ratio for UP Pool = Total Value of Both Pools ÷ Value of UP Pool
  • Payout Ratio for DOWN Pool = Total Value of Both Pools ÷ Value of DOWN Pool

For example, if there is 15 BNB in the DOWN side of a round, and the overall prize pool is 150 BNB, the DOWN payout ratio will be (150/15) = 10x.

  • Payout Amount = Payout Ratio × Position × (1 - service Fee)

In the above case, if the round ends on a DOWN result, if you committed 2 BNB to a DOWN position and the service fee is 0.01, you would get a payout of (2*10) × (1-0.01) = 19.8 BNB. This would amount to a total profit of 17.8 BNB [19.8 (total won) - 2 (your original stake)].

What are the fees you collect?​

There are two types of fees: service fee and oracle fee.

  • Service fee: is the fee we collect for providing the service. The service fee is only collected when you withdraw any winnings you made. Refunds do not incur a service fee. This is currently set at 0% so you can trade without any fees as part of our alpha phase. The service fee can be changed by the devs and we will announce any change before hand through our communication channels. Note that the service fee is hard capped at 10% by the smart contract.

  • Oracle fee: This fee is only collected when the smart contract needs to query the oracle for the round result. The oracle fee is incurred on the first person to make a claim transaction for a round. Any subsequent claims by anyone will not inccur the oracle fee. Currently the oracle fee is set to 0.0006 BNB, which is approximately $0.12.

    For example, John and Ann have some BNB to claim on a certain round. John is the first one to initiate the claim transaction. The smart contract does not know the result of the round yet so it queries the oracle for the result and collects the oracle fee from John. The oracle responds with the result, and then the smart contract sends John his winnings and John's claim transaction is complete. When Ann initiates a claim transaction after John, she does not incur the same oracle fee because the smart contract already knows the round result and does not need to query the oracle. The smart contract directly sends Ann her winnings without any additional fees.

Is there a time limit for collecting my winnings?​

No, you will have the ability to collect your winnings at any time in the future.

Can I change or remove my position?​

Once you have locked your position, you cannot change or remove it. That is why you must be sure that you are content with your position before initiating a transaction.

Market pause​

What does it mean when markets are paused?​

A market pause means that no new positions can be made. Only the devs can initiate a market pause.

What causes a market pause?​

  1. When there are conditions which affect the reliability of the contract.
  2. When a specific asset has certain trading hours. For example, stocks have certain trading hours throughout the day, and outside those hours the market is paused.

What happens to my position if the market pauses?​

If you have an active position when a market pause happens, you will be refunded your position amount in full.

Can I initiate a claim transaction in a paused market?​

Yes, pausing only stops new positions from being made. You can initiate any claim transaction at any time, even in a paused state.