How It Works
Every market is a question with two possible outcomes: YES or NO.
The Basics
Someone creates a market with a question and deadline
Traders buy YES or NO shares
Prices move based on supply and demand
After the deadline, the outcome is proposed and finalized
Winning shares pay $1.00 each
Shares and Prices
Each market has two share types:
YES shares — Pay $1 if outcome is YES
NO shares — Pay $1 if outcome is NO
Prices range from $0.01 to $0.99. A share priced at $0.70 means the market thinks there's a ~70% chance that side wins.
Example
Market: "Will ETH be above $5,000 on Dec 31?"
Current YES price: $0.35
Current NO price: $0.65
You think ETH will moon. You buy 100 YES shares at $0.35 = $35 total.
If ETH is above $5,000:
Your 100 shares are worth $100
Profit: $65
If ETH is below $5,000:
Your shares are worth $0
Loss: $35
Price Movement
Prices change when people trade. More buying pressure = higher price.
The AMM (automated market maker) sets prices using a constant product formula. Large trades move prices more than small trades.
Selling Before Resolution
You don't have to wait for resolution. Sell anytime at the current market price.
If you bought YES at $0.35 and it rises to $0.60, sell for profit without waiting.
Resolution
After the deadline:
Anyone can propose the outcome
24-hour challenge period
If no challenge → outcome is final
Winners claim their payouts
See Oracle System for details.
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