Market types

There are two types of markets on the platform: Event Markets and Price Markets. Both are parimutuel whereby all funds enter a shared pool, and winners split it proportionally. However, they differ significantly in structure, pricing mechanics, and how strategies are managed.

Comparison between Event Markets and Price Markets

Type
Event Markets
Price Markets

Topic focus

Event outcomes

Asset price ranges

Round structure

Open-ended until resolution

Fixed 8-hour rounds (4h trading, 4h settlement)

Resolution trigger

Event conclusion or scheduled end time

Fixed target time (8h from round open)

Pricing model

Power Curve

Clock Curve

Driver of price

Number of tokens minted per outcome

Time elapsed in the round

Early entry advantage

Lower price before demand builds

Significantly lower price early in round

Position exits

Allowed before resolution

Not permitted — locked until resolution

Payout structure

Proportional share of total pool

Proportional share of total pool

Payout availability

At resolution finalization

At resolution finalization

Continuous rounds

No

Yes — new round opens every 4 hours

Event Markets are open-ended outcome markets. A market is created around a specific question or event, with multiple possible outcomes. Participants mint outcome tokens for whichever outcome they expect to grow in demand, or resolve as correct, depending on their strategy.

Outcomes & Structure

Event Markets support multiple outcomes — not just binary yes/no. Each outcome has its own token, and all tokens draw from the same shared pool at resolution. Market resolution can occur at a pre-set end time, or earlier if the underlying event concludes — for example, a market on a sports result resolves as soon as the final score is confirmed, not at a scheduled future time.

Pricing: Power curve

Outcome token pricing follows a power curve that is demand-based. Each mint increases the price of that outcome token for subsequent buyers — cost is a function of how many tokens for that outcome already exist.

The more popular an outcome becomes, the more expensive it gets to enter.

This means:

  • Early entrants pay lower prices on outcomes before they attract attention

  • Later entrants pay a higher price, reflecting accumulated market conviction

  • Prices across outcomes shift dynamically as minting activity changes supply

Learn more in Pricing: Power curve

Position Exits

Positions in Event Markets can be sold before resolution. Participants may exit at any point while the market is open, realising a gain or loss based on the sell price relative to their entry cost. The sell price is affected by the redeem tax. Learn more about it in Sell

Resolution & Payouts

When the market resolves, the correct outcome is confirmed. The entire pool flows to holders of that outcome's tokens, distributed proportionally by token share.

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