From 4294481b5b93993f6f9c0864095060713a3443b4 Mon Sep 17 00:00:00 2001
From: mantikoros <sgrugett@gmail.com>
Date: Thu, 3 Feb 2022 16:59:59 -0600
Subject: [PATCH] change fee structure

---
 common/calculate.ts  |  6 +++---
 common/fees.ts       |  4 ++--
 common/payouts.ts    | 10 +++++-----
 common/sell-bet.ts   |  4 ++--
 web/pages/about.tsx  |  7 ++++---
 web/pages/create.tsx |  2 +-
 6 files changed, 17 insertions(+), 16 deletions(-)

diff --git a/common/calculate.ts b/common/calculate.ts
index 2e69690e..fbbfd66f 100644
--- a/common/calculate.ts
+++ b/common/calculate.ts
@@ -104,7 +104,7 @@ export function calculateShareValue(contract: Contract, bet: Bet) {
 }
 
 export function calculateSaleAmount(contract: Contract, bet: Bet) {
-  return (1 - 2 * FEES) * calculateShareValue(contract, bet)
+  return (1 - FEES) * calculateShareValue(contract, bet)
 }
 
 export function calculatePayout(
@@ -145,7 +145,7 @@ export function calculateStandardPayout(
     totalShares[outcome] - phantomShares[outcome] - totalBets[outcome]
   const winningsPool = truePool - totalBets[outcome]
 
-  return amount + (1 - 2 * FEES) * ((shares - amount) / total) * winningsPool
+  return amount + (1 - FEES) * ((shares - amount) / total) * winningsPool
 }
 
 export function calculatePayoutAfterCorrectBet(contract: Contract, bet: Bet) {
@@ -204,7 +204,7 @@ function calculateMktPayout(contract: Contract, bet: Bet) {
 
   return (
     betP * bet.amount +
-    (1 - 2 * FEES) *
+    (1 - FEES) *
       ((betP * (bet.shares - bet.amount)) / weightedShareTotal) *
       winningsPool
   )
diff --git a/common/fees.ts b/common/fees.ts
index 718cdbcb..767107ed 100644
--- a/common/fees.ts
+++ b/common/fees.ts
@@ -1,4 +1,4 @@
-export const PLATFORM_FEE = 0.01 // == 1%
-export const CREATOR_FEE = 0.01
+export const PLATFORM_FEE = 0.01
+export const CREATOR_FEE = 0.09
 
 export const FEES = PLATFORM_FEE + CREATOR_FEE
diff --git a/common/payouts.ts b/common/payouts.ts
index c4010ba2..77630502 100644
--- a/common/payouts.ts
+++ b/common/payouts.ts
@@ -38,12 +38,12 @@ export const getStandardPayouts = (
     userId: bet.userId,
     payout:
       bet.amount +
-      (1 - 2 * FEES) *
+      (1 - FEES) *
         ((bet.shares - bet.amount) / shareDifferenceSum) *
         winningsPool,
   }))
 
-  const creatorPayout = 2 * CREATOR_FEE * winningsPool
+  const creatorPayout = CREATOR_FEE * winningsPool
 
   console.log(
     'resolved',
@@ -98,7 +98,7 @@ export const getMktPayouts = (
     userId: bet.userId,
     payout:
       p * bet.amount +
-      (1 - 2 * FEES) *
+      (1 - FEES) *
         ((p * (bet.shares - bet.amount)) / weightedShareTotal) *
         winningsPool,
   }))
@@ -107,12 +107,12 @@ export const getMktPayouts = (
     userId: bet.userId,
     payout:
       (1 - p) * bet.amount +
-      (1 - 2 * FEES) *
+      (1 - FEES) *
         (((1 - p) * (bet.shares - bet.amount)) / weightedShareTotal) *
         winningsPool,
   }))
 
-  const creatorPayout = 2 * CREATOR_FEE * winningsPool
+  const creatorPayout = CREATOR_FEE * winningsPool
 
   return [
     ...yesPayouts,
diff --git a/common/sell-bet.ts b/common/sell-bet.ts
index e3080644..eeeed355 100644
--- a/common/sell-bet.ts
+++ b/common/sell-bet.ts
@@ -36,8 +36,8 @@ export const getSellBetInfo = (
   const probBefore = getProbability(contract.totalShares)
   const probAfter = getProbability(newTotalShares)
 
-  const creatorFee = 2 * CREATOR_FEE * adjShareValue
-  const saleAmount = (1 - 2 * FEES) * adjShareValue
+  const creatorFee = CREATOR_FEE * adjShareValue
+  const saleAmount = (1 - FEES) * adjShareValue
 
   console.log(
     'SELL M$',
diff --git a/web/pages/about.tsx b/web/pages/about.tsx
index a0d7659e..47e796a7 100644
--- a/web/pages/about.tsx
+++ b/web/pages/about.tsx
@@ -1,7 +1,7 @@
 import { cloneElement } from 'react'
+import { CREATOR_FEE } from '../../common/fees'
 import { Page } from '../components/page'
 import { SEO } from '../components/SEO'
-import { useContracts } from '../hooks/use-contracts'
 import styles from './about.module.css'
 
 export default function About() {
@@ -132,8 +132,9 @@ function Contents() {
       </p>
       <h3 id="how-are-markets-resolved-">How are markets resolved?</h3>
       <p>
-        The creator of the prediction market decides the outcome and earns 1% of
-        the betting pool for their effort.
+        The creator of the prediction market decides the outcome and earns{' '}
+        {CREATOR_FEE * 100}% of the winnings as a commission for creating and
+        resolving the market.
       </p>
       <p>
         This simple resolution mechanism has surprising benefits in allowing a
diff --git a/web/pages/create.tsx b/web/pages/create.tsx
index 0dddd6f1..bc747fc7 100644
--- a/web/pages/create.tsx
+++ b/web/pages/create.tsx
@@ -177,7 +177,7 @@ export function NewContract(props: { question: string; tag?: string }) {
           <span>Market ante</span>
           <InfoTooltip
             text={`Subsidize your market to encourage trading. Ante bets are set to match your initial probability. 
-              You earn ${CREATOR_FEE * 100}% of trading volume.`}
+              You earn ${CREATOR_FEE * 100}% of the winnings.`}
           />
         </label>
         <AmountInput