THE REFERENCE

how fadethat.family works

Every rule below is enforced by the contract that runs the live book.

What this is

Each listed coin is a matchup. Believers deposit ETH into that coin’s pool. Faders open a short for 6h or 24h. If the price falls by settlement, the fade is paid ETH from that pool. If it rises, the pool keeps the stake.

There is no margin and no liquidation. Long tickets are not offered — if you think a coin holds or rises, you back its pool.

The payoff

The move is (settle − strike) / strike, clamped between −100% and +100%. You receive stake × (1 − move). That clamp is the whole design: your payout lands between zero and twice your stake, so the pool’s maximum liability is exactly your stake — which is why no borrow, no funding rate and no liquidation engine exist anywhere in this system, and why the book cannot become insolvent.

Price at settlementYou receive on a 10 ETH fade
Down 100%20 ETH
Down 20%12 ETH
Unchanged10 ETH
Up 20%8 ETH
Up 100% or more0 ETH

Premium and fee sit on top of the stake and are spent either way.

Opening a fade

Minimum stake0.005 ETH
You sendStake + premium + fee, in one transaction
6 hour fee0.5% of stake
24 hour fee0.75% of stake
StrikeLower of the live price and the 15 minute TWAP
ExpiryRounded up to the next 5 minutes
Early closeNot possible

Premium

The premium is paid by the fader to the pool that fills it. The base curve at 6 hours is 0.1% plus 0.3% times how full the pool is, where full means the 60% use cap. A 24 hour term doubles that curve.

Momentum is then added from the coin’s own 1h and 6h TWAPs: fading a coin that has already run costs more. After a hard dump the premium floors at zero — it never goes negative.

Caps and gates

A quote reverts when any of these fail. Every one of them fails closed.

Market depthAt least 8 ETH in the coin’s own pool
One wallet, one coin1% of that depth
Total open fades5% of that depth
Capacity60% of backing, less what is reserved

Depth is the ETH-side virtual reserve at the current price — the liquidity actually sitting where a fade would settle, not everything ever deposited across all ranges.

Price and settlement

StrikeMin(live price, 15 minute TWAP)
Settle priceTWAP over the 15 minutes up to expiry
Who settlesAnyone. settle() is permissionless.
VoidThe oracle cannot price the window, or more than 6 hours have passed
Void payoutStake + premium + fee, in full

Settling on a TWAP rather than the last print means one wick at the wrong second cannot decide a ticket. The price comes from the coin’s own pool, read on-chain at settlement — no operator supplies it, and no operator can withhold it. Only venues that keep price observations can be listed at all, which is why Uniswap v4 markets are not eligible.

Backing

You own shares of the backer slice of one coin’s pool. Protocol seed, if any, is junior: when fades win, seed is wiped before backers lose a wei. When fades lose, the gain splits between seed and backers in proportion. Premium and the backers’ half of the fee go to backers only.

Deposits lock for 24 hours. After that, only ETH that is not reserved against an open fade can leave. You are never exposed to a coin you did not back.

Fees and the burn

Half of every fee goes to the pool that filled the fade. The other half accrues in the contract for buying and burning $FADE. A voided fade is refunded in full and its share of the queue is cancelled.

Custody

There isn’t any. The book is a contract on Robinhood Chain at 0x84f73147ce6cf9ceb7f105e3fe17d05dc38a4c81, and it holds the ETH itself. Backing, stakes and fees never pass through a company wallet, and no key can move them.

The owner key can list markets, set them live, pause new fades and deposits, and add seed. It cannot move backer deposits, touch stake escrow, alter an open ticket, or decide a settlement. settle() is permissionless and reads the coin’s own pool, so anyone can close out a ticket and nobody can refuse to. Even while paused, withdrawals and settlement keep working.