Market Rules & Guidelines
Understanding how PMX markets work and payout mechanisms
Creating a Market
How to launch your own prediction market
Initial Liquidity Requirement:
- • Creators must provide $100 - $1,000 in initial liquidity
- • This liquidity seeds the presale pool and CAN be lost
- • Initial liquidity is split 50/50 between both outcome options
Creator Fee Share:
- • Higher initial liquidity = higher fee share
- • Fee share ranges from 3% to 30% of all trading fees
- • More skin in the game = more rewards
Liquidity Goal:
- • Set a liquidity goal from $1,000 to $20,000 (in $1k increments)
- • Market migrates to full trading when this goal is reached
Example: Providing $1,000 initial liquidity splits it into $500 YES and $500 NO to seed the presale market
Presale Phase
How betting works before market migration
Low Fees, Dynamic Odds:
- • Only 0.5% fee on presale buys (vs 1% post-migration)
- • Slippage applies based on pool size
- • Odds move dynamically with each bet
How Odds Work:
- • If YES pool has $1,000 and you bet $500, your odds are ~66% (1000/1500)
- • Early bets get better odds and higher fee shares
- • Your bet shifts liquidity between pools like an orderbook
Early Bird Rewards:
- • 30% of all trading fees reserved for presale participants
- • The more you contribute to the presale, the higher your fee share
- • Earlier bets receive higher proportional fee share
- • First movers get the best odds AND best rewards
Delta Neutral Strategy:
- • You can bet on BOTH sides to help migrate the presale
- • This creates a delta neutral position (hedged)
- • Still earn fee share proportional to your total contribution
- • Helps ensure presale reaches migration goal
Presale Refunds:
- • If presale doesn't reach migration goal, all USDC is refunded
- • Full refunds to all presale participants
- • No risk if market fails to migrate
Get in early for the best odds, highest share of trading fees, and help markets migrate!
Market Migration
What happens when liquidity goal is reached
Automatic Migration:
- • When total presale bets reach the liquidity goal, market automatically migrates
- • Market becomes fully tradeable with AMMs
- • All presale bets are converted to tokens
Token Airdrop:
- • All presale participants receive tokens airdropped to their wallets
- • Token value equals your bet value at your entry odds
- • Tokens are immediately tradeable
Migration is seamless and automatic - no action required from participants
Post-Migration Trading
How markets operate after migration
Full AMM Trading:
- • Markets become fully tradeable tokens with automated market makers
- • Standard trading fees apply
- • Arbitrage bots balance odds to sum to 100%
Guaranteed Payouts:
- • All payouts occur at 100% odds
- • Winners receive full value of their winning tokens
- • Payouts distributed via airdrop within 24 hours of market resolution
Post-migration markets operate like standard prediction markets with guaranteed payouts
Fee Distribution
How trading fees are split across participants
Market Creator: Receives 30% of all trading fees (as configured during market creation)
Early Presale Participants: Share 30% of all trading fees proportionally based on entry timing
PMX Platform: Receives 40% of trading fees for operations and development
Fee Split: 30% Creator | 30% Early Participants | 40% PMX Platform
How It Works Under the Hood
Technical architecture explained
Orderbook-Style Architecture:
- • When you bet on YES, liquidity is removed from YES pool and added to NO pool
- • When you bet on NO, liquidity is removed from NO pool and added to YES pool
- • This creates dynamic odds that reflect true market sentiment
Arbitrage Balancing:
- • Automated arbitrage bots ensure odds sum to 100%
- • Prevents mispricing and maintains market efficiency
- • Creates fair pricing for all participants
This architecture ensures fair, efficient markets with dynamic pricing
Ready to Participate?
Now that you understand the rules, explore markets or create your own