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This page is reference material for anyone quoting, hedging, or building tools on top of Fairground. For deeper protocol behavior, check the links under Related protocol topics at the end.

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Fees, rebates, and matching context

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Where fees go after a match

Each matching cycle collects fees from executed flow. That pool is then allocated across:
  • Minority-side rebates - paid to positions on the thinner side of the book, proportional to size where applicable
  • The insurance fund
  • A protocol remainder
How much flows toward rebates depends on imbalance entitlement E: it scales with executable imbalance up to configured caps. When the book is balanced in that cycle, E = 0 and the rebate-oriented slice does not apply in the same way.

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Executable imbalance (why the “sides” matter)

Executable notional is constrained by oracle thresholds:
  • Opening long and closing short require threshold ≥ oracle price
  • Opening short and closing long require threshold ≤ oracle price
The matcher aggregates long-side depth L = openingLong + closingShort and short-side depth S = openingShort + closingLong, then uses I = |L − S| as the imbalance input that feeds into entitlement and allocation.