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What Are Prediction Markets?

A prediction market is a trading platform where you buy and sell Shares based on the outcome of future events.


How It Works

Every market poses a question — "Will X happen?" — and each possible outcome has a Share you can trade. Share prices are always between $0.001 and $0.999, and the price reflects the crowd's estimated probability: a Share at $0.70 means the market sees a 70% chance.

Yes + No = $1.00. Every market has two sides — Yes and No — and their prices always add up to $1.00. If Yes is $0.70, No is $0.30. One side's gain is the other side's loss.

If the outcome happens, your Shares settle at $1.00. If not, $0.00. But you don't have to wait for the result — you can sell your Shares anytime before settlement. If the price moves in your favor, you can lock in profit early. If it moves against you, you can cut losses.

Example: "Will Team A win the championship?" — Yes Share is trading at $0.60. Buy 100 Shares at $0.60 = $60 cost. Team A wins → 100 × $1.00 = $100. Profit: $40 (+67%) Or — Yes rises to $0.80 before the game ends. Sell at $0.80 = $80. Profit: $20 without waiting for the result.

Profit Structure

Outcome
Calculation
Example(Limit Order: Yes $0.600 × 100 Shares)

Cost

Shares × Price

100 × $0.600 = $60

Win

Shares × $1.000

100 × $1.000 = $100 → Net +$40

Loss

Shares × $0.000

$0 → Net -$60

Settlement (CROSS Prediction)

Each market's outcome is determined by an oracle — an external data source that confirms the final result.

Settlement
Market Category
Oracle
Resolution

Crypto Up/Down (BTC)

Verifiable BTC Price Oracle

Auto-settled per round

Event Markets

(Polymarket Inherited)

UMA Oracle + Polymarket API (cross-verified)

After 1-hour cooling period following result confirmation


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