Prices

Prices on Incentive reflect the market’s probability of fund recovery. For example, if a claim trades at 30%, the market estimates a 30% chance of recovery, and the claim is priced at 30% of its initial value—yielding full value if recovery occurs.

Claim prices are purely driven by supply and demand, ensuring decentralized, fair pricing. Importantly, claim prices do not directly represent the percentage of funds recovered in a market but rather the discount on seller’s claim for a given period.