Business Analyst with Mathematics Background (Project-Based)
Mathematical Formula for Crypto Futures Betting Game
Pre-Conditions
Main goal is to treat a mathematical formula that will manipulate real-time cryptocurrency pricing data displayed to users in a way that ensures the platform maintains a controlled return on investment while adhering to predefined limits and integrating the system’s fee structure.
Real-time Pricing Data:
The system will receive live data streams of crypto prices from an external provider
This real-time data will be displayed on a trading graph for users to make betting decisions
Manual and automatic bets:
Users can place manual bets based on their price predictions and close them manually
Users can also place an automatic bets which will be closed automatically when specified profit/loss thresholds or price points are met
While placing the bet user should enter a Wager as well as multiplier values which are affecting the bet’s outcome
Bet outcome calculation is determined by the regular future betting formula
Bet Closure:
Bet can be closed in 2 variants:
If bet’s price prediction has exceeded the Bust Price of the bet (calculated with wager, multiplier and entry price of cryptocurrency)
And if bet’s loss reached the limit set by user during Automatic Bet placement
Bet Settings:
Users may input conditions for automatic betting such as profit/loss ranges for cryptocurrency price or bet’s financial outcome
User can close any bet type (i.e. manual and automatic) manually without the need of reaching the set bet’s threshold
Fee Structure:
The system will apply additional fees to bets:
Flat Fee: a percentage fee per entry and exit bets
P&L Fee: a fee based on the bet’s profit and loss
Task
Objective:
The mathematician should create a formula which will manipulate the real-time cryptocurrency data displayed to user in a way that achieves the following requirements:
Controlled ROI
Ensure the ROI (Return on Investment) for users falls within the range of 95% to 97%
The remaining percentage should go to the system as a part of platform’s margin
The margin return can be calculated within 2-4 weeks of time (no requirement to have a return each second/day, etc.)
Price Manipulation
The formula should be applied to real-time pricing data to produce slightly edited/faked price data shown on a trading graph
The manipulation should be discreet enough to be unnoticeable but successful in achieving required ROI
Edited/faked pricing data should be the same for platform’s users
The manipulated data should stay within limits to prevent extreme deviations from the actual price data that can call the suspicion from user
The deviation between real-time data and faked can be up to 10% (i.e. rollbit.com platform has a price for BTC around $67,000, and the real-time price is around $62,000)
Margins for Bets Analysis
The formula must inquire about the analysis of bets data
The formula should adjust the pricing manipulation based on the overall betting activity on the platform ensuring that the total payouts remain within the controlled margin
The adjustment should ensure that larger or more frequent bets do not disrupt the controlled ROI and platform’s margin
Integration with Fees Structure
The formula should account for Flat Fee and P&L Fee, making sure they are applied to the final outcome of the bet
Desired Outcome
The mathematical formula should:
Manipulate pricing data without exceeding determined boundaries
Maintain user’s confidence by ensuring that data looks natural and realistic on the trading graph
Ensure users’ average ROI stays within the 95-97% range with the rest contributing to the platform’s margin
Adjust manipulation dynamically based on the bets activity and outcome ensuring system-wide profit control
Delivery
The formula should be provided in a clear mathematical notation with an explanation of how it operates on real-time data and bet analysis
Any constants or variables used in a formula should be clearly defined (e.g. manipulation thresholds, caps on price deviation, bet volume analysis)
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