📈Trade your Market Prediction
Hands-on guide on how to make your first bet on the Prediction Market
Last updated
Hands-on guide on how to make your first bet on the Prediction Market
Last updated
Whales Market pioneers the application of Constant Product Market Maker (CPMM) mechanics to prediction markets, revolutionizing how outcome probabilities are priced. This innovative approach introduces automated market-making efficiency to all prediction markets, enabling a continuous trading experience by consistently providing liquidity across the entire price range for any given outcome. The system's mathematical precision ensures transparent, algorithm-driven pricing and guarantees consistent liquidity for all participants. So how should everything goes?
Let's circle back to the $GOAT Marketcap prediction as an example:
Milly strongly believs that $GOAT will reached the overall marketcap above $3B. He has putted himself on a YES positions on the on the Prediction Market and place a bet $10 for that.
The flows for that should be:
Milly send $10 into the our CPMM
Our CPMM will automatically convert $10 into 10 shares of YES and 10 shares of NO. So it should be and the 20 YES and 20 NO tokens, breaking its invariant.
CPMM returns 15 YES shares to Milly, restoring the invariant.
Once the trading is settled, our CPMM has 5 YES and 20 NO, which equivalance to the odds rate at 80% of YES and 20% for NO. At this point, each share Milly has purchased costs $0.67/ shares.
So assume that on the otherhand, Robin have an opposite POV with Milly, so he putted the prediction for the shares of NO. With the given rate between 5 YES and 20 NO, Robin will purchased an amount of 5 Shares that are available. The price for each shares that Robin Purchased is $0,05/ shares.
This is just a simulated case we've set up. The actual price for each share will vary between different prediction listings.
The CPMM mechanism ensures continuous liquidity by dynamically adjusting the market's depth and price. This automated market-making approach facilitates efficient betting experience.
3) Event Resolutions
Once a prediction market's settlement is finalized, all deposited capital will be transferred to the winning side, based on the resolved outcome of YES or NO.
4) Cancel Your orders If your order remains unfilled and you choose to withdraw your bid, you may cancel it at any time. Your collateral will be returned to your wallet immediately.
Please note that closing your orders may incur a fee. Please check Platform Fee
5) Orders tracking You can seamlessly track your orders via the main dashboard:
Order Value: Total capital deposited for each prediction
Outcome: Result of your prediction
YOU WON: The total capital you can claim if you WIN
CLOSE BET: Finalized Your Prediction
The results will only be displayed once the Prediction listing is settled.
