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The basics

Every PMX market has two outcomes with custom tickers (e.g. UP / DOWN). Internally, the first outcome is called “YES” and the second “NO” in formulas and on-chain fields. The first outcome price represents the market’s implied probability. A price of $0.70 means the market thinks there’s a 70% chance of the first outcome. Both outcome prices always sum to approximately $1.00.

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How prices move (AMM mode)

AMM markets use a constant product pricing model. The market has two reserves — one for YES tokens and one for NO tokens. Prices are derived from the ratio of these reserves: 
YES price = NO reserve / (YES reserve + NO reserve)
NO price  = YES reserve / (YES reserve + NO reserve)
When someone buys YES tokens:
  • YES tokens are removed from the reserve → YES price goes up
  • The ratio shifts, so NO price goes down
When someone sells YES tokens:
  • YES tokens are added back to the reserve → YES price goes down
The more you buy, the more the price moves. This is called price impact, and it’s larger in markets with less liquidity.

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Price impact and slippage

Price impact is how much your trade moves the price. A $10 trade in a $100,000 market barely moves the needle, but the same trade in a $100 market moves it significantly. Slippage is the difference between the quoted price and the actual execution price. Set a slippage tolerance (e.g., 5%) to protect against unexpected price movement between when you get a quote and when the trade executes.

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Pool mode pricing

In Pool mode, there’s no dynamic pricing. All tokens are minted at a fixed 1:1 rate. The “price” is effectively $0.50 for both outcomes, and the final payout depends on how many people hold the winning token.

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Getting a quote

Before trading, always get a quote to see:
  • How many tokens you’ll receive
  • The effective price per token
  • The price impact of your trade
  • The fees
GET /v2/markets/{id}/quote?side=UP&amount=100000000&action=buy
See the Quote endpoint for details.