manifold/web/lib/calculation/contract.ts
2021-12-20 17:35:59 -06:00

70 lines
2.0 KiB
TypeScript

import { Bet } from '../firebase/bets'
import { Contract } from '../firebase/contracts'
const fees = 0.02
export function getProbability(pool: { YES: number; NO: number }) {
const [yesPool, noPool] = [pool.YES, pool.NO]
const numerator = Math.pow(yesPool, 2)
const denominator = Math.pow(yesPool, 2) + Math.pow(noPool, 2)
return numerator / denominator
}
export function getProbabilityAfterBet(
pool: { YES: number; NO: number },
outcome: 'YES' | 'NO',
bet: number
) {
const [YES, NO] = [
pool.YES + (outcome === 'YES' ? bet : 0),
pool.NO + (outcome === 'NO' ? bet : 0),
]
return getProbability({ YES, NO })
}
export function calculateShares(
pool: { YES: number; NO: number },
bet: number,
betChoice: 'YES' | 'NO'
) {
const [yesPool, noPool] = [pool.YES, pool.NO]
return betChoice === 'YES'
? bet + (bet * noPool ** 2) / (yesPool ** 2 + bet * yesPool)
: bet + (bet * yesPool ** 2) / (noPool ** 2 + bet * noPool)
}
export function calculatePayout(
contract: Contract,
bet: Bet,
outcome: 'YES' | 'NO' | 'CANCEL'
) {
const { amount, outcome: betOutcome, shares } = bet
if (outcome === 'CANCEL') return amount
if (betOutcome !== outcome) return 0
let { totalShares } = contract
// Fake data if not set.
// if (!totalShares) totalShares = { YES: 100, NO: 100 }
const startPool = contract.startPool.YES + contract.startPool.NO
const pool = contract.pool.YES + contract.pool.NO - startPool
return (1 - fees) * (shares / totalShares[outcome]) * pool
}
export function resolvedPayout(contract: Contract, bet: Bet) {
if (contract.resolution)
return calculatePayout(contract, bet, contract.resolution)
throw new Error('Contract was not resolved')
}
export function currentValue(contract: Contract, bet: Bet) {
const prob = getProbability(contract.pool)
const yesPayout = calculatePayout(contract, bet, 'YES')
const noPayout = calculatePayout(contract, bet, 'NO')
return prob * yesPayout + (1 - prob) * noPayout
}