Liquidity risk on the graph

We will hear the following descripyion:

6 bit precision betting over an 8 bit graph.  The sitre owner is telling the traders the contract,they can search a depth of 6, and the tree is organized out to eight.  The site owner is chicken, he is only going to cover the bit error far eight bit, much less than 2%, mean while the bets have a precision of more than 3%.  That bit error is liquidity risk.  This site owner is not taking any, he is making his money on ads,most likely this is a lark betting site, betting college games and stuffed with recreational betters.  Where are the informing bets?  They are being stiffed onto the end of the graph, at bit level 9, and the site has a graph operator in the background combing through those bets and bubbling up the significant (lowest probability) pairs.

The government currency banker is keeping two trees, the saving and borrowing tree.  It is gfairly brave, it keeps the tree about six deep, and actually kicks out member banks when the tree gets to deep.  The currency banker wants to be transparently exposed,it hold no more depth then member banks can search.

There are a lot of methods to run the graphs, as long as you have a mathematician trained in mutual entropy calculations.  You are free to really design markets, just keep the concept of precision in mind. The conrtacts, close automatically when recursions are bounded and cycles are paid for.

Precision is recursion 

That is why it is costly for the trader and site owner.  That was the problem ethereum had, offering greater precision and having the queue stack up as they pay out the bit error.  Site owners of today, with their smart cards, can obtain generators of sequences from actual trades, and run them against your sie before you turn on the contract.  Remember, these are not humans, they are bots equipped to scan for entropy mis-matches, gaps in the queues. One bad outcome is when the site owner gets it wrong, and his graph loads up with singletons at the end, his site Huffman encoder is plowing through the chaos and the owner is committed to pay the liquidity cost for what ever is in the huge pile.  Every one is making 'secure digits' when the queue sizes are optimal. The currency banker wants the queue short, five pending transactions is large when billions are flowing in second.