Core concepts
Tayho transforms bounded outcome prices into a continuous leverage surface while accounting for collateral and settlement in USDC. This page explains the vocabulary applications encounter.Markets and prices
An outcome-market price lies between zero and one. Tayho reads an outcome book midpoint and maps it to logit space:Q, entry logit L₀, and current logit Lₜ, synthetic PnL is proportional
to Q × (Lₜ - L₀), with the sign determined by direction. The protocol clamps prices away from
zero and one so arithmetic stays bounded.
Positions and margin
A position records its market, direction, quantity, entry state, posted margin, funding index, and lifecycle status. Traders do not borrow a transferable asset; the junior vault is the economic counterparty. Equity changes with mark-to-market PnL, settled funding, fees, and additional margin. A position becomes liquidatable when equity reaches its maintenance requirement. Adding margin increases the buffer but does not change quantity. All public SDK amounts use integer units:- USDC collateral uses token units according to the configured collateral decimals.
- Protocol prices, quantities, shares, rates, and many accounting values use 18-decimal WAD units.
- Onchain identifiers and amounts are represented as
bigint, never JavaScript floating point.
Funding
Funding runs on fifteen-minute epochs. A rate combines an independent index premium with vault inventory skew, is capped, and updates cumulative long/short indices. Position funding is settled lazily from index differences. Funding observations are separate from transaction execution: Tayho normalizes the upstream outcome book, submits an authorized observation, and leaves final accounting to the contracts.Liquidation and freeze
Liquidation is permissionless and based on a time-weighted mark rather than a single instantaneous book value. Stale or insufficient market data causes execution to fail closed. Near market resolution, Tayho enters a freeze window:- New exposure cannot be opened.
- The freeze mark is pinned.
- Positions are force-flattened according to the deployed resolution rules.
Junior vault and claims
The LP vault holds junior liquidity, trader margin escrow, protocol revenue, and the reserve buffer. Available capital pays winning traders. If immediately available USDC is insufficient, the unpaid amount becomes a senior FIFO claim. New liquidity recapitalizes outstanding claims before becoming freely withdrawable. Withdrawals cannot jump the claim queue or reduce capital below required risk buffers.Orders and sessions
Tayho orders are typed EIP-712 messages. Current order families include:- Market open and market close.
- Limit open.
- Stop-loss and take-profit.
- Reduce-only partial closes and OCO group behavior where supported by the order.
Relayed actions
Every current SDK write follows the same sequence:- Read preparation state at one block.
- Build the exact action and consequence.
- Sign typed data with the connected wallet.
- Submit the signed payload with a stable idempotency key.
- Follow the receipt through acceptance, broadcast, confirmation, and indexing.
Staking and protocol revenue
TAYHO can be staked for the configured staker share of eligible protocol revenue. Staking actions cover stake, claim, and unstake. Reward distribution and token issuance are contract-accounted; applications should use API/indexed history for display and direct reads for action preparation.Consistency model
Realtime delivery is never the sole proof of action completion. Use receipt polling or indexed
transaction correlation for lifecycle correctness.
Protocol overview
See the contract responsibilities, capital flows, safety controls, and environment discovery.