Loss Refunds

Loss refunds are currently live and functional on Omni.

Omni uses market making revenue from the Omni Liquidity Provider to to refund a portion of traders' losses. Loss refunds operate via a lottery system, with increases in odds based on reward tier. Refunds are for either the entire value of the loss or 20% of the Loss Refund Pool, whichever is lesser.

Tier	Loss Refund Odds Boost	Loss Refund Odds
No Tier	1x	2%
Bronze	1.125x	2.25%
Silver	1.25x	2.5%
Gold	1.375x	2.75%
Platinum	1.5x	3%
Diamond	1.75x	3.5%
Grandmaster	2x	4%

Mechanism

1. 10% of Omni's spread revenue is directed to the Loss Refund Pool (0xc47756133753280c37b227c24782984e021c4544).

2. Each time a user realizes negative PnL (with a loss of more than $1), they have a chance to receive a refund.

   1. Base Refund Chance: 2%

   2. Reward Tier Multiplier: 1-2x

   3. Refund Chance = Base Refund Chance (2%) × Reward Tier Multiplier

3. If the user is awarded a loss refund, their payout is either 100% of the realized loss or 20% of the Loss Refund Pool, whichever is lesser.

A $0.1 fee is deducted from all loss refunds to cover gas.