When you win
Unused original tokens return to your balance. The profit becomes a USD FIFO claim, which is paid in USDC as liquidity reaches it. Until paid, that queue amount is not a wallet USDC balance.
If the collateral’s executable USD value falls, profit scales down relative to its opening value. Collateral appreciation does not amplify the profit above the original basis.
When you lose
The contract determines the lost token amount. Any tokens not lost are returned. The contribution to the payout pool earns $pSDICE for the trader.
With an empty queue, the normal split is 90% pool / 1% SOL / 7% stakers / 2% burn. The 99% token-conversion portion is split 90:7:2 after execution. With any FIFO claim queued, the entire token-conversion output stays in the payout pool; the 1% SOL allocation continues. Tiny unswappable amounts and rounding can remain in the pool. Receipts record the actual quantities.
A created venue’s normal 2% burn allocation is split: 1% burns its backing token and 1% buys and burns SDICE. With queued claims, both new burns and new staking allocations pause. The root SDICE venue burns 2% SDICE.
- Lost collateral
- $SDICE settlement
- FIFO funding first
When the lost tokens also fell in value
For backed collateral, locked $SDICE covers depreciation of the lost portion only. If a $100 bag is now worth $50 and 20% of the bag is lost, the backing contribution targets $10, not the whole $50 decline.
That consumed backing goes to the payout pool and counts toward the trader’s $pSDICE issuance too. If backing runs out, the position still closes and records a pool shortfall; it does not create user debt.