docs: update notes on expected return

README.md

@@ -116,7 +116,7 @@ These are the description of the variables used by the Trader service:
 - `OMEN_CREATORS`: addresses of the market creator(s) that the service will track
   for placing bets on Omen. The address `0x89c5cc945dd550BcFfb72Fe42BfF002429F46Fec` corresponds to the Market creator agent for the Hackathon.
 - `BET_AMOUNT_PER_THRESHOLD_X`: amount (wei) to bet when the prediction returned by the AI Mech surpasses a threshold of `X`% confidence for a given prediction market. In the values provided above the amounts vary between 0.03 xDAI (60% confidence) and 0.1 xDAI (100% confidence).
-- `BET_THRESHOLD`: threshold (wei) for placing a bet. A bet will only be placed if `expected_return - bet_fees >= BET_THRESHOLD`. [See below](#some-notes-on-the-service).
+- `BET_THRESHOLD`: threshold (wei) for placing a bet. A bet will only be placed if `potential_net_profit - BET_THRESHOLD >= 0`. [See below](#some-notes-on-the-service).
 - `PROMPT_TEMPLATE`: prompt to be used with the prediction AI Mech. Please keep it as a single line including the placeholders `@{question}`, `@{yes}` and `@{no}`.
 
 
@@ -153,8 +153,15 @@ Once you have configured (exported) the environment variables, you are in positi
 Please take into consideration the following:
 
 - If the service does not have enough funds for placing a bet, you will see an `Event.INSUFICIENT_FUNDS` in the service logs.
-- If the service determines that a bet is not profitable (i.e., `expected_return - bet_fees < BET_THRESHOLD`), you will see an `Event.UNPROFITABLE` in the service logs, and the service will transition into the blacklisting round. This round blacklists a bet for a predetermined amount of time. This can be adjusted by using the `BLACKLISTING_DURATION` environment variable.
-- For simplicity, the current implementation considers `expected_return = bet_amount`, although this calculation might be refined.
+- If the service determines that a bet is not profitable 
+ (i.e., `potential_net_profit - BET_THRESHOLD < 0`), you will see an `Event.UNPROFITABLE` in the service logs, 
+ and the service will transition into the blacklisting round. 
+ This round blacklists a bet for a predetermined amount of time. 
+ This can be adjusted by using the `BLACKLISTING_DURATION` environment variable.
+- For simplicity, 
+ the current implementation considers `potential_net_profit = num_shares - net_bet_amount - mech_price - BET_THRESHOLD`, 
+ although this calculation might be refined. 
+ The `net_bet_amount` is the bet amount minus the FPMM's fees.
 - When assigning `BET_THRESHOLD` take into consideration that fees (at the time of writing this guide) are in the range of 0.02 xDAI. See, for example, [here](https://api.thegraph.com/subgraphs/name/protofire/omen-xdai/graphql?query=%7B%0A++fixedProductMarketMakers%28%0A++++where%3A+%7B%0A++++++creator_in%3A+%5B%220x89c5cc945dd550BcFfb72Fe42BfF002429F46Fec%22%5D%2C%0A++++++outcomeSlotCount%3A+2%2C%0A++++++isPendingArbitration%3A+false%0A++++%7D%2C%0A++++orderBy%3A+creationTimestamp%0A++++orderDirection%3A+desc%0A++%29%7B%0A++++fee%0A++%7D%0A%7D). We urge you to keep an eye on these fees, as they might vary.
 
 ## For advanced users