Frequently Asked Questions
Learn how the Options AMM works and how to trade effectively
Arcade.xyz is an on-chain options AMM. Instead of betting "yes" or "no" on a binary outcome, you pick a strike price and a range—just like buying an option.
Traditional prediction markets are all-or-nothing. If you bet "BTC above $100K" and it hits $99,999, you lose everything.
On Arcade.xyz, you buy options with a strike (your target price) and a range (your conviction). If the final price lands near your strike, you earn a payout proportional to how close you were. No more losing everything because you were $1 off.
Quick Reference
μ (Mu) - Your Target
Where you think the price will land. The bullseye of your bet.
σ (Sigma) - Your Confidence
How sure you are. Lower σ = more confident = higher risk/reward.
Collateral
USDC you put up to cover your max loss. Fully onchain, no IOUs.
The Golden Rule
Be close, get paid. The closer to the final price, the more you win.