Funding Bot Liquidity
Funding Bot Liquidity
Section titled “Funding Bot Liquidity”When a market is created, the order book starts empty. To give early traders a counterparty, bitCaster can run an automated market maker (AMM) that posts initial bid and ask orders to the book.
Funding is optional. After the market is created, the wizard shows a funding screen where you can choose No liquidity, Minimal, Standard, Deep, or a custom budget.
What You Fund
Section titled “What You Fund”The deposit becomes the AMM budget for that market. The AMM currently uses an LMSR strategy, which turns the creator’s budget and initial outcome probabilities into starting quotes on the CLOB.
The deposit is non-refundable. It is committed to market-making until the market resolves. The maker’s loss is bounded by the funded budget; there is no withdrawal, residual claim, or creator profit-share claim.
Sat markets use sats. USD markets use US cents. Some API fields still use legacy names such as amountSats; in funding contexts those names mean base-asset subunits.
Funding Flow
Section titled “Funding Flow”- Create the market.
- Choose a funding tier or choose No liquidity.
- If funding, pay the Lightning invoice shown by the wizard.
- The wallet service credits the deposit and starts quoting after the market-maker budget is ready.
Only the first funding deposit is used as the market-maker budget in v1. Later deposits are credited as plain collateral because there is no top-up path yet.
If You Close the Wizard
Section titled “If You Close the Wizard”Closing the wizard does not undo the market. The market remains created and can still accept human orders. If you selected No liquidity, or if funding has not completed yet, the automated maker will not quote until the funding flow is completed.
Trade-Offs
Section titled “Trade-Offs”Smaller budgets create thinner quotes and can move more quickly when informed traders trade against the maker. Larger budgets create deeper quotes, but they also put more non-refundable capital at risk. Creator probabilities matter because they set where the first LMSR quotes appear.
AMM liquidity is mainly for bootstrapping. In the long run, active human and professional market makers should provide tighter, more informed liquidity than the initial automated quotes.