Overview
Every PMX market is a binary prediction market with two custom outcomes (e.g. UP / DOWN). The market mode determines how tokens are priced and traded.| Feature | Pool | AMM |
|---|---|---|
| Initial liquidity | None required | Creator seeds USDC |
| Buying | ✅ Both sides | ✅ Both sides |
| Selling before resolution | ❌ No | ✅ Yes |
| Price movement | Fixed 50/50 until resolution | Moves with every trade |
| Payout | Proportional split | $1 per winning token |
| Best for | Low-stakes community markets | Active trading markets |
Pool mode
Pool mode is the simplest option. No upfront capital is needed.- Buying: Users deposit USDC and receive equal amounts of both outcome tokens at a 1:1 ratio.
- No selling: Tokens can’t be sold back before the market resolves.
- Payout: When the market resolves, all the USDC in the pool is split proportionally among holders of the winning token.
AMM mode
AMM (Automated Market Maker) mode creates a live trading market with dynamic prices.- Seed liquidity: The market creator deposits initial USDC, which funds the AMM’s reserves.
- Buying and selling: Users can buy either outcome token and sell them back at any time before resolution.
- Dynamic pricing: Prices move based on supply and demand. Buying one side pushes its price up and the other side’s price down.
- Payout: Winning tokens are redeemable for exactly **0.
Which mode should I use?
- Pool — if you want a simple, low-cost market that doesn’t need liquidity upfront
- AMM — if you want a real trading market with price movement and the ability to sell positions