FOREVER MARKETS
How dominance works
The dominance index converts two stock performances into one bounded, complementary market.
The index
Each stock begins from a reference price. The oracle converts the live bid and ask for each stock into normalized total-return multipliers, including the stock token’s corporate-action multiplier.
The two normalized values are converted into a ratio. Conservative lower and upper bounds use the unfavorable combination of bids and asks for each side.
Examples
Broad market direction mostly cancels. The market is about which company leads from the reference point.
| Scenario | NVIDIA multiplier | AMD multiplier | D |
|---|---|---|---|
| Both unchanged | 1.00× | 1.00× | 0.5000 |
| NVIDIA +20%, AMD flat | 1.20× | 1.00× | 0.5455 |
| NVIDIA flat, AMD +20% | 1.00× | 1.20× | 0.4545 |
| Both +20% | 1.20× | 1.20× | 0.5000 |
Why it is perpetual
D is defined at every valid oracle update and can remain between 0 and 1 indefinitely. The contracts clamp executable prices to 0.01–0.99, so both sides retain finite value and endpoint risk remains calculable.
A position can stay open while it remains funded and healthy. Funding replaces expiry as the mechanism that charges persistent imbalance.