Leverage Architecture
Here's the strategy we use to offer leverage to our current users:
Gambit gives users 2-5x leveraged exposure on prediction market outcomes without the platform ever taking a directional bet. When a user goes 2x long on YES at $0.60, Gambit simultaneously takes the opposite side — buying the equivalent NO position. Because binary markets guarantee YES + NO always equals $1.00, every dollar deployed is fully hedged. The platform has zero exposure to the outcome. It doesn't matter who wins. Gambit gets paid either way.
Revenue comes from two streams, both risk-free. First, a 2% fee on every leveraged trade — collected at entry regardless of outcome. Second, liquidation capture: when leveraged positions move against users and hit their margin threshold, Gambit closes the position and retains roughly 30% of the collateral. Combined, this produces a 4-5% net margin on total volume with no directional risk.
The capital efficiency is what makes this scalable. Because hedged positions recycle capital on resolution (every market eventually settles), the same pool turns over 2-3x per cycle. A mid-six-figure capital base can drive seven to eight figures in monthly volume. As Gambit expands across multiple prediction market platforms, that multiplier compounds — same architecture, more surfaces, more flow.
The moat is execution complexity. Running hedged leverage across prediction markets requires real-time position management, margin engines, cross-platform liquidity access, and deep domain expertise in how these markets settle. It's capital-intensive to operate and hard to replicate without both the infrastructure and the market knowledge. This isn't a feature bolted onto a trading app — it's financial infrastructure purpose-built for prediction markets.
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