The two participants
Every Yesterday contract has a Contract seller and a Contract buyer. Each contributes assets before the fill becomes a funded contract.
Contract seller
Section titled “Contract seller”The Contract seller is the person seeking a conditional sale or purchase. We also use the word issuer for this role.
For sell yesterday, they provide BTC that is converted to USDC. For buy yesterday, they provide USDC that is converted to BTC.
They choose either a target receipt or a fixed Contract price. The assets from conversion and the buyer’s payment are locked together. The seller receives whatever remains after the buyer’s settlement payout.
The buyer’s payment is not money the seller can spend at entry. It is part of the locked funds.
Contract buyer
Section titled “Contract buyer”The Contract buyer pays a positive Contract price in the same asset the contract will pay out.
They receive a payout when tomorrow’s average moves past yesterday’s reference in their favor. The amount depends on the size, the Split rate, the price move, and the funded cap.
The buyer may receive zero. They may also receive a positive amount that is smaller than what they paid.
Same payout asset, different outcomes
Section titled “Same payout asset, different outcomes”| Sell yesterday | Buy yesterday | |
|---|---|---|
| Seller’s original input | BTC | USDC |
| Buyer’s payment | USDC | BTC |
| Locked funds | USDC | BTC |
| Seller’s payout | USDC | BTC |
| Buyer’s payout | USDC | BTC |
Size is a reference, not a delivery promise
Section titled “Size is a reference, not a delivery promise”One reference unit represents 1 BTC. Smaller sizes are supported by the design. A 0.1 BTC reference size is one tenth of a unit.
Buying a contract with a 1 BTC reference size does not mean you will receive 1 BTC. In the sell direction, the buyer receives USDC. In the buy direction, the BTC payout depends on the formula and can be zero.
What each side should review
Section titled “What each side should review”Before a fill, both sides need to understand their payment, maximum loss, possible payout, payout asset, and waiting period. The worked examples show gross payouts and results after entry amounts separately.