> For the complete documentation index, see [llms.txt](https://docs.mimicry.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mimicry.org/whitepaper/core-mechanics.md).

# Core Mechanics

The Mimicry Protocol consists of a series of open-source smart contracts and a GUI web application.

<figure><img src="https://1902786921-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FuzaMnyiTbEZGPCLnMftY%2Fuploads%2FBK4TUaFG0fJ2E9Yy5G8W%2FScreen%20Shot%202023-02-08%20at%201.45.43%20PM.png?alt=media&amp;token=6c97ac45-7e3a-4b7e-861d-afca38125d94" alt=""><figcaption><p>Illustration of Mimicry GUI with description of each component</p></figcaption></figure>

## **🔎 Overview**

Each Pantomime is a smart contract that manages a pool of tokenized collateral supplied by liquidity providers ([Producers](/whitepaper/players-and-participants/producers-liquidity-providers.md)) and traders ([Actors](/whitepaper/players-and-participants/actors-traders.md)) based on the price movement of an on-chain reference-price feed.&#x20;

Theoretically, the skew of collateral deposited into a Pantomime at a given time could be exactly split, 50/50, between bulls and bears. However, in practice this will be rare. More commonly there will be an asymmetric skew of capital, because a group of bullish or bearish Actors will collectively predict that the reference price of a Pantomime will be more likely to go up or down. This creates a situation where the “underdog” side of a pool has less capital at risk than the “favorite” side, and thus each side will have unique odds. We call the unique odds of each side of the market the [True Odds](/whitepaper/core-mechanics/true-odds.md).