> For the complete documentation index, see [llms.txt](https://whitepaper.after-bell.uk/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.after-bell.uk/trading-architecture/liquidity-model.md). # Liquidity Model Covers liquidity bootstrapping and the role of liquidity in orderly markets. Liquidity is a practical requirement for an order-book prediction market. A defined question is not readily tradable when no suitable bids or asks are available. ### Orders make the market AFTERBELL’s CLOB relies on actual orders. A participant buying Yes needs available sell interest at an acceptable price, or an applicable path to mint paired shares from USDG. A participant exiting a position similarly needs opposing interest. New markets may start empty. Thin books can limit counterparties and affect practical tradability. The source does not specify spread, depth, or execution guarantees. Liquidity must be evaluated market by market. ### Intended bootstrap model The source plans to use a market maker bot that places bids and asks to provide initial market liquidity. Its estimated operating cost is approximately **$500 per market per week**. ``` New market → limited organic liquidity → market-maker quotes → more available orders → improved tradability ``` This is an intended mechanism, not a guarantee. Organic liquidity is explicitly not guaranteed. The source describes a 0.5% trading fee and a 0.1% resolution fee. Its proposed allocation is 70% treasury, 20% market-maker subsidies, and 10% keeper bot. The subsidy allocation connects protocol economics to the cost of liquidity bootstrapping; it does not prove sufficient funding, realized revenue, or future liquidity. Unlike a pooled AMM, core CLOB matching does not depend on a traditional liquidity pool. It instead depends on available orders. That can suit binary outcomes while making market-maker activity and organic participation central product constraints. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://whitepaper.after-bell.uk/trading-architecture/liquidity-model.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.