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HOW IT WORKS

Branchpoint
primer

Multiverse finance in seven short ideas.

01

One asset becomes two futures

Pick a real event: will there be an interest rate hike? Any financial asset, such as a security, or a cryptoasset like the 1 BTC here, splits into two conditional versions: one that exists if the hike happens, one if it doesn't. Together they're worth exactly your original asset.

1 BTC today interest rate hike? 1 BTC ▸ hike 1 BTC ▸ no hike hike no hike 1 BTC today interest rate hike? 1 BTC ▸ hike 1 BTC ▸ no hike
1 BTC ≈ $96k today interest rate hike? 70% 30% 1 BTC ▸ hike worth $90k 1 BTC ▸ no hike worth $110k the odds come from a prediction market $96k = 70% × $90k + 30% × $110k 1 BTC ≈ $96k today interest rate hike? 70% 30% 1 BTC ▸ hike worth $90k 1 BTC ▸ no hike worth $110k the odds come from a prediction market $96k = 70% × $90k + 30% × $110k

02

The market prices each future

A prediction market says the hike is 70% likely, no hike 30%. BTC is worth different amounts in each future: say $90k after a hike, $110k without one. Today's price is just the probability-weighted blend: about $96k.

03

Cash out any time

You never have to wait for the event. Sell 1 BTC ▸ no hike to someone who believes in that future: it's $110k in a world that's 30% likely, so it fetches about $33k of real cash, today.

no hike sold 1 BTC ▸ no hike the real world, today $33k ≈ 30% × $110k no hike sold 1 BTC ▸ no hike the real world, today $33k ≈ 30% × $110k
1 BTC ▸ hike 1 BTC ▸ no hike a complete set = 1 BTC 1 BTC whole again, no event needed 1 BTC ▸ hike 1 BTC ▸ no hike a complete set = 1 BTC 1 BTC whole again, no event needed

04

Recombine to undo

Splitting is reversible. Hold the full set, one claim per outcome, and you can recombine it back into the original asset at any time. Nothing created, nothing lost.

05

Trade inside a world

Each future has its own economy. In the hike world you can sell 1 BTC ▸ hike for $100k ▸ hike. Those dollars exist only if the hike happens.

the hike world you market sell 1 BTC ▸ hike receive $100k ▸ hike every asset in here only exists if the hike happens the hike world you market sell 1 BTC ▸ hike receive $100k ▸ hike every asset in here only exists if the hike happens
the no-hike world you market lend 1 BTC ▸ no hike borrow $20k ▸ no hike against it lending, borrowing, structured products: a full economy per world the no-hike world you market lend 1 BTC ▸ no hike borrow $20k ▸ no hike against it lending, borrowing, structured products: a full economy per world

06

Lend and borrow there too

Conditional assets are not just tradeable. They are also collateral. Lend your claim out, borrow against it, and build positions that only exist in the future you believe in.

07

Reality resolves

The event happens. Assets in the realized world become real: $100k ▸ hike settles into $100k of ordinary money. The other world's assets are unrealized: they simply never came to be.

hike: it happened unrealized $100k $100k ▸ hike . hike: it happened unrealized $100k $100k ▸ hike

All of it together

Every idea above on one evolving worldline. Scroll to step through it.

Back Next
1 BTC today unlocked, claimed by the market interest rate hike? {{resEventLabel}} 30% 1 BTC ▸ no hike lent 1 BTC ▸ no hike owed $20k ▸ no hike $20k ▸ no hike $10k ▸ no hike locked as backing a complete set = 1 BTC the hike world: trade you market sell 1 BTC ▸ hike receive $100k ▸ hike the no-hike world: lend & borrow you market lend 1 BTC ▸ no hike borrow $20k ▸ no hike against it sold $10k ▸ no hike $13k $10k ▸ hike $10k ▸ no hike $10k {{resWorldLabel}} $103k $90k + $13k $13k lent 1 BTC owed $20k the odds inside each bubble come from a prediction market one asset becomes a complete set: nothing created, nothing lost your position, world by world. Nothing has left the worlds yet a full set of $10k claims equals $10k: recombine and exit the hike future becomes real. The no-hike world fades the no-hike future becomes real. The hike world fades both worlds at once: one trader, two economies sell a claim in the no hike world for cash today 70% 1 BTC ▸ hike $100k ▸ hike $90k ▸ hike

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