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Ultramarkets LPs don’t take the opposite side of trader bets. You’re a lender, not a counterparty. When you deposit USDC into the vault, your capital gets lent to traders who want leveraged exposure to prediction markets. They post margin, borrow from the vault, and we execute their positions directly on Polymarket. You earn yield from their trading activity without taking directional risk on event outcomes.

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The Flow

1

Deposit

You deposit USDC into the vault and receive umUSD tokens
2

Lending

Traders borrow from the vault to open leveraged positions
3

Execution

We execute their trades on Polymarket using borrowed capital
4

Fee Collection

Traders pay fees and share profits when they win
5

Value Accrual

Fees and profit share flow back to the vault, increasing umUSD value
6

Withdraw

You withdraw anytime there’s available liquidity

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What You’re Actually Earning From

Trading Fees

1% of margin — Every position opened pays a fee. A trader depositing $1,000 margin pays $10 to the vault. This accrues whether the trader wins or loses.

Profit Sharing

10% of trader profits — When traders close profitable positions, 10% of their profit flows to the vault. If a trader makes $5,000 profit, $500 goes to LPs.

Liquidation Recovery

Remaining margin — When positions get liquidated, the vault recovers its loaned capital plus any remaining margin after covering losses.

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What You’re NOT Exposed To

You have zero directional exposure to prediction market outcomes. Whether Trump wins, Bitcoin hits $100k, or the Chiefs win the Super Bowl doesn’t affect your returns.
Your exposure is limited to operational risks, not market outcomes.

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Your Actual Risk Exposures

Risk TypeDescription
Credit riskCan we liquidate positions before losses exceed margin?
Execution riskCan we close positions cleanly on Polymarket?
Smart contract riskAre the contracts secure?
Our entire risk management system exists to minimize these risks.