> ## Documentation Index
> Fetch the complete documentation index at: https://docs.stonkme.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# How a market works

> From an open take to a settled payout.

A market is one take, one pot of money, and two to five traders competing to grow it.

## What the creator sets

| Setting | What it means |
| - | - |
| **Take** | One line, up to 100 characters. What the traders are out to prove. |
| **Money** | USDC the creator puts up. It's split evenly between the traders who join. |
| **Stocks** | Up to four from the [stock list](/mechanics/stocks). Traders can trade nothing else. |
| **Length** | 10 minutes, an hour, a day or a week, counted from the start. |
| **Trader slots** | 2 to 5. |
| **Join window** | One hour in the app. |

## The life of a market

<Steps>
  <Step title="Taking traders">
    Traders join by moving collateral from their stake into the market. Each seat is a **sleeve**: the trader's slice of the money plus the collateral backing it.
  </Step>

  <Step title="Start">
    When every slot is taken, or the join window closes with at least two traders, the market starts and each sleeve gets its slice. If fewer than two joined, the market is cancelled and everyone gets their money back.
  </Step>

  <Step title="Trading">
    Traders swap between USDC and the market's stocks. Each trade is checked: allowlist, per-trade cap, fill price, and that the stake still covers the positions. See [Stakes and tiers](/concepts/stakes).
  </Step>

  <Step title="End and settle">
    When the clock runs out, every sleeve is sold back to USDC and settled. The trader gets 30% of any profit; the creator gets the rest. See [Liquidation and settlement](/concepts/liquidation-and-settlement).
  </Step>
</Steps>

## Who earns what

| | If the sleeve gains | If it loses |
| - | - | - |
| **Creator** | Their slice back plus 70% of the profit | Their slice back, less whatever the trader's collateral couldn't cover |
| **Trader** | Their collateral back plus 30% of the profit | Their collateral, less the loss |


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