What is FaaSFi?

Difference between Prediction Markets and Risk Transfer

To understand FaaSFi, one must distinguish between "betting" and "transferring risk."

Prediction Markets (The "Bet") In a standard prediction market, a user asks: "Will the Suez Canal close this month?" They buy a "Yes" share for $0.10. If the event happens, they profit $0.90. The primary motivation is speculative profit based on an informational edge.

Risk Transfer (The FaaSFi Solution) FaaSFi asks a different question: "If the Suez Canal closes, how do I cover my shipping losses?" For a corporate logistics manager, buying 1,000 "Yes" shares on a retail app is operationally unfeasible. It requires managing wallets, gas fees, and constant price monitoring.

FaaSFi converts this interaction into an Oracle Bonded Corporate Derivative (OBCD). The client simply purchases a "Supply Chain Disruption Policy." Behind the scenes, FaaSFi's protocol automatically hedges this risk by purchasing liquidity across Polymarket, Kalshi, and Limitless. We transform the volatile act of betting into a stable, contract based insurance product.

Why Aggregation Matters

Current prediction markets are fragmented. This fragmentation creates three critical problems that FaaSFi solves through aggregation:

1. Liquidity Depth and Slippage No single platform has enough liquidity to absorb a multi million dollar corporate hedge without significantly moving the price (slippage). By splitting a large order across three platforms, FaaSFi minimizes price impact and ensures the client gets a fair premium.

2. Pricing Efficiency (Arbitrage) The probability of an event often differs between platforms. Polymarket might price an event at 40% while Kalshi prices it at 45%. FaaSFi's Smart Order Router (SOR) automatically identifies the lowest price for the buyer. Furthermore, the protocol can capture this spread (arbitrage) to subsidize fees or increase yield for protocol stakers.

3. Compliance Bridging A US company cannot legally trade on offshore DeFi platforms. An offshore crypto fund cannot easily access US regulated banking rails. FaaSFi acts as the bridge. Through our legal wrapper and sub-account structure, we route capital to the appropriate venue while maintaining full compliance for the end user.