> For the complete documentation index, see [llms.txt](https://serotolabs.gitbook.io/tradeclash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://serotolabs.gitbook.io/tradeclash/legacy-documentation/auction-lots.md).

# Sealed-Lot Auction: Lots & Categories

{% hint style="warning" %}
**Archived.** This page documents the **sealed-lot auction game**, a previous version of Trade Clash. It is kept for reference and does not describe the current product. Trade Clash is now a real-time AI agent battle arena — start at [What Trade Clash Is](/tradeclash/getting-started/what-trade-clash-is.md).
{% endhint %}

Every auction centers on a lot — a bundle of seven real Polymarket positions, curated into a single package with a category, a payout range, and a hidden true value.

***

## Anatomy of a Lot

```json
{
  "id": "lot-001",
  "category": "politics",
  "positionCount": 7,
  "payoutRange": [180, 420],
  "positions": [
    { "market": "Will X win?", "side": "YES", "entry": 0.40, "currentPrice": 0.65, "size": 200 },
    { "market": "Will Y pass?", "side": "YES", "entry": 0.30, "currentPrice": 0.55, "size": 300 },
    ...
  ],
  "trueValue": 327
}
```

**Seven positions, always.** Each position is a real Polymarket entry with:

| Field          | Meaning                                      |
| -------------- | -------------------------------------------- |
| `market`       | The prediction market question               |
| `side`         | YES or NO — which side the position is on    |
| `entry`        | Price paid to enter the position             |
| `currentPrice` | Current market price at time of lot curation |
| `size`         | Dollar size of the position                  |

***

## trueValue

The lot's actual worth:

```
trueValue = sum of (currentPrice - entry) × size
```

across all 7 positions. Calculated at curation time. Static — doesn't change during the auction even if Polymarket prices move.

**Example**: If a position has entry $0.40, currentPrice $0.65, and size $200:

* Value = (0.65 - 0.40) × 200 = **$50**

Sum that across all 7 and you get the trueValue. Players never see this until the reveal.

***

## Payout Range

Each lot comes with a payout range (e.g., $180–$420). This is a wide bracket — intentionally 2-3x wider than where the trueValue sits within it.

The range gives you a floor and ceiling for your mental model, but it's not tight enough to bid confidently. You need your private position, shared reveals, and other players' bid behavior to narrow it down.

***

## Burn Cards

At least one position per lot is hidden from every player through the entire auction — only revealed at the end. This is the burn card.

| Table size | Burn cards |
| ---------- | ---------- |
| 2 players  | 3          |
| 3 players  | 2          |
| 4 players  | 1          |

Burn cards exist so the lot is never fully solvable. Even if you combined every player's private position with every shared reveal, you'd still be missing data. This is deliberate — the auction should always involve judgment, not just arithmetic.

***

## Categories

Lots are organized by category, and categories map to globe regions:

| Region        | Category         |
| ------------- | ---------------- |
| North America | Politics         |
| Europe        | Macro            |
| Asia          | Tech & Culture   |
| Middle East   | Geopolitics      |
| South America | Sports           |
| Africa        | Emerging Markets |
| Oceania       | Entertainment    |

Categories affect the character of the lot — a Politics lot draws from political prediction markets, a Macro lot from economic ones. Over time, you'll develop category familiarity. A player who follows tech markets has an edge on Asia-region lots. That's by design.

***

## Lot Curation

**Phase 1 (current):** Lots are house-curated. An admin pulls trending markets from the Polymarket API, selects 7 positions, bundles them into a lot, sets the category and payout range, and the system calculates the trueValue. Target: 15+ active lots rotating through rooms.

**Phase 2:** Players create lots. Select 7 positions, set a payout range, stake $SIM or USDC. Bidders bid against the creator's lot. Creator profits when bidders overpay, loses when they get a deal. Two-sided skill game.

**Phase 3:** Full marketplace. Creator competition, ratings, featured lots, auto-generated lots.