Prediction Markets Exchange

Comprehensive guide to PMX presales, trading, and mechanics

What is PMX?

Prediction Markets Exchange (PMX) is a decentralized prediction market platform built on Solana. It enables users to create markets, provide liquidity, and trade on future events with transparent mechanics and fair resolution processes.

Key Features

  • • Decentralized market creation and trading
  • • Automated liquidity provision with uncapped gains
  • • Transparent resolution mechanisms
  • • Cross-platform token trading on Solana

Presales

Market Creation Process

Anyone can create a prediction market through our presale system. To get your market listed, you need to raise funds from the community to demonstrate interest and viability.

Funding Requirements

Choose Your Tier: $10,000 - $100,000 USDC

Creators can select any amount within this range

Contributors are automatically whitelisted proportionally to their funding amount

Once sold out, markets are forwarded to PMX team for manual approval

How to Participate

  1. Find a presale market you want to support
  2. Send SOL or USDC to the funding wallet
  3. Get automatically whitelisted based on your contribution
  4. Wait for market approval and launch

Liquidity Provision

Uncapped Gains for LPs

Liquidity providers receive both their initial capital back and a proportional share of trading volume fees, creating potential for unlimited upside based on market performance.

Fee Distribution

50% of Trading Volume Fees

Total fee pool distributed as: 40% to LPs, 10% to creators, 50% to platform

40% LP Fee Share

Liquidity providers receive 40% of all trading fees generated by their market

10% Creator Fee Share

Market creators receive 10% of all trading fees generated by their market

Example Calculation

• Seed: $10,000 in $50,000 presale (20% share)

• Market volume: $100M

• Total fee pool: $100M × 1% = $1M

• Creator fee: $1M × 10% = $100,000

• LP share: $1M × 40% × 20% = $80,000

• Total LP return: Initial $10,000 + $80,000 = $90,000

Risk-Reward Profile

  • Capital Preservation: Get your initial investment back
  • Uncapped Upside: No limit on potential gains from trading volume
  • Market Selection: Choose markets you believe will generate high volume
  • Viral Potential: Bet on which markets will capture public attention

Trading Mechanics

Token Launch Structure

Once a market is approved and goes live, two separate tokens are created for each outcome, enabling flexible trading across the Solana ecosystem.

Token Specifications by Tier

$10K - $50K Tier

  • • Market cap per token: $500K
  • • Total market cap: $1M
  • • Tradeable on all Solana DEXs

$50K - $100K Tier

  • • Market cap per token: $5M
  • • Total market cap: $10M
  • • Tradeable on all Solana DEXs

Note: Each tier maintains 50/50 odds by adjusting token supply, not price per token.

Trading Platforms

PMX tokens can be traded on any Solana DEX, including:

  • • Jupiter
  • • Raydium
  • • Orca
  • • Axiom
  • • Meteora
  • • And more...

Market Resolution

Resolution Process

When a market reaches its resolution date, the platform automatically executes the settlement process to determine winners and distribute payouts.

Settlement Steps

1

Liquidity Withdrawal

All liquidity is withdrawn from both tokens to prevent further trading

2

Winner Determination

Platform determines the winning outcome based on real-world events

3

Airdrop Distribution

$0.001 per token is airdropped to winning token holders

Payout Examples by Tier

$10K-$50K Tier ($1M Market Cap)

If you hold 1,000 YES tokens and YES wins:

Payout: 1,000 × $0.001 = $1.00

$50K-$100K Tier ($10M Market Cap)

If you hold 1,000 YES tokens and YES wins:

Payout: 1,000 × $0.01 = $10.00

Plus any additional rewards from liquidity provision and arbitrage profits

Payout Distribution Rights

⚖️

Platform Payout Distribution Rights

PMX reserves the right to distribute payouts equally among liquidity providers based on the liquidity pool conditions. This may occur when there are insufficient counterparties trading or when market conditions require alternative payout mechanisms to ensure fair distribution of rewards.

Internal Mechanics

Arbitrage System

PMX uses an automated arbitrage mechanism to maintain market efficiency and generate additional profits for liquidity providers.

Option Wallets

Token Allocation

  • • 99% of both YES and NO token supply moved to separate option wallets
  • • These wallets act as automated market makers
  • • Maintain total market cap at $10M target

Arbitrage Logic

Below $10M: Option wallets buy tokens until target reached

Above $10M: Option wallets sell tokens until target reached

Profit Distribution: Arbitrage profits shared with liquidity providers

Market Efficiency

  • Price Stability: Maintains consistent total market cap
  • Liquidity: Ensures adequate trading liquidity
  • Arbitrage Profits: Generates additional returns for LPs
  • Fair Pricing: Prevents manipulation and ensures fair odds

Governance & Resolution

Current Resolution System

PMX currently uses a manual resolution system similar to Kalshi's approach, with plans for future decentralization through token-based governance.

Manual Resolution

Current Approach

  • • PMX team manually resolves markets
  • • Similar to Kalshi's resolution process
  • • Only approved markets that can be objectively resolved
  • • Fast resolution timeline

Market Selection

Initially, only markets with clear, verifiable outcomes will be approved to prevent controversy and ensure fair resolution.