moreover, the model presented herein will be shown to be volume-independent and risk-compensating. A volume-independent exchange rate algorithm gives the same exchange rate irrespective of the amount of money a participant may exchange in a single transaction. The extent to which volume independence may be realistic in an everyday-world sense is arguable, but it certainly simplifies the presentation to participants. A risk-compensating algorithm allows greater gains for participants who take greater risks, a characteristic that defines an efficient market. Without it, the knowledgeable participant would have no reason to take risky actions. Before presenting the complete model, however, a simpler subset will be discusses to show why the more complex representation is needed