How to read capital efficiency
Capital efficiency measures how much profit each dollar of volume produced. Two traders both up $15,000 are not equal if one moved $100,000 through the book and the other moved $500,000.
The ratio compares strategies rather than bankrolls. High-volume market making can run profitably at a fraction of a percent; a selective directional trader taking a handful of positions a month should be far higher, or the selectivity is not paying for itself.
Why locked capital raises the stakes
Prediction-market capital is committed until the market resolves. Money sitting in a position that will settle in four months is money that cannot take the next opportunity, and no P&L figure records that cost.
That is the argument for reading efficiency next to holding period. A 3% return over two weeks and a 3% return over seven months are different results.
Where 0xinsider shows capital efficiency
Trader profiles show this ratio as "Return on volume, all-time": P&L divided by volume. The grade does not use it. The leaderboard lists P&L and volume side by side, the two inputs the ratio comes from.
