Rules

Everything you need to know about PMX prediction markets.

Introduction

PMX is a prediction market protocol on Solana. Trade YES/NO outcome tokens on real-world events and claim payouts when the outcome is decided. All funds are held in program-controlled smart wallets on Solana — fully self-custodial.

1
Deposit

Deploy your smart wallet and deposit USDC

2
Trade

Place limit or market orders — matching happens off-chain, settlement on-chain

3
Resolve

The outcome is determined after the resolution date

4
Redeem

Winners redeem their tokens for $1 USDC each

Self-custodial
All funds are held by the Solana program in smart wallets. No one — not even the matching engine — can move funds outside the program's rules. You can withdraw your available balance directly on-chain at any time.

Orderbook (CLOB)

PMX uses a Central Limit Order Book (CLOB) for prediction markets. Orders are placed and cancelled entirely off-chain for speed and zero gas costs. Only settlement — the actual transfer of funds — happens on-chain.

How It Works

1
Deposit USDC

Deploy your smart wallet and deposit USDC. Funds are held by the Solana program.

2
Place orders (free)

Sign an order message with your wallet. No transaction fee — the engine stores it off-chain.

3
Automatic matching

When your order crosses an existing order, the engine matches them instantly with sub-second latency.

4
On-chain settlement

The engine submits a settlement transaction to Solana. The program verifies signatures, checks balances, and atomically transfers tokens.

Order Types

TypeDescription
LimitRests in the book at your price until filled or cancelled
MarketFills immediately at best available prices; unfilled remainder is cancelled

Conditional Tokens

Each market has YES and NO tokens backed 1:1 by USDC in the vault. You can split USDC into a YES + NO pair, or merge a pair back into USDC. After resolution, winning tokens redeem for $1 each.

Order placementFree (no gas)
MatchingOff-chain, sub-second
SettlementOn-chain (Solana)
CustodySelf-custodial (smart wallet)
Win payout$1 per winning token
Key principle
The on-chain program is the sole custodian of funds. The off-chain engine coordinates matching and submits settlements, but cannot move funds outside the program's rules.

Trading

Connect any Solana wallet, deposit USDC into your smart wallet, then place orders on any active market. Orders are signed messages — no transaction fees to place or cancel.

Outcome Tokens

Each market has YES and NO tokens. Prices are in cents and represent implied probability (e.g. YES at 62c = 62% chance). After resolution, winning tokens redeem for $1 USDC each. Losing tokens are worth $0.

Fees

Placing and cancelling orders is free. Settlement transactions are submitted by the engine with no fee to the user. The only cost is the initial deposit and withdrawal transactions (standard Solana transaction fees).

Settlement

When a market reaches its resolution date, trading stops. The outcome is determined and the market is resolved.

Redeeming Winnings

After resolution, redeem your winning tokens for $1 USDC each directly from the vault. Losing tokens are worth $0. There's no expiry — redeem whenever you want.

Withdrawing

Your available smart wallet balance (USDC not committed to open orders) can be withdrawn on-chain at any time, even if the matching engine is down.

Guarantees
All settlement is on-chain. The program verifies ed25519 signatures for both parties, checks balances, and atomically transfers tokens. The vault always has enough USDC to cover all outstanding conditional tokens.

Coming Soon

Additional market strategies are in development:

  • Seeded AMM — Constant-product market maker with creator-seeded USDC liquidity.
  • Parimutuel Pool — Winner-take-all betting pool with zero upfront cost for creators.
  • DLMM — Concentrated liquidity via Meteora DLMM pools, traded through Jupiter.

PMX — Prediction markets on Solana