Initial Price, Future Price, and Payout

Markets move quickly, and prices are constantly updating. When users enter a position on Manic, three key inputs work together to determine the potential payout: the initial price, the digitalPrice, and the future price at expiry.

To make this concrete, we use the following definitions:

• $t_0$ : the entry time. It represents the moment when the user opens a position.

• $P_0$ : the initial price. It represents the price of the underlying asset at $t_0$.

• $t_i$ : the expiry time. It represents the time when the position expires. Users choose this when they open the position.

• $P_i$ : the future price. It represents the price of the underlying asset at $t_i$.

How the payout is determined:

• At expiry, Manic compares the initial price $P_0$ with the future price $P_i$ at the chosen $t_i$.

• Based on the user's direction (HIGHER or LOWER), stake, and the digitalPrice implied by market volatility and timeframe, the protocol calculates the final payout automatically and settles it on‑chain.