Prediction market glossary

The amount of funds you commit to a single position. Funds stay in your wallet / in on-chain escrow; FUTURAI does not custody funds.

Automated market maker — a mechanism that prices positions algorithmically from supply and demand.

A risk-management term: the amount set aside specifically for prediction markets, separate from your savings.

The primary, production blockchain network where transactions carry real value, as opposed to test networks.

The difference between your estimated probability and the market price.

A smart contract that holds allocations on-chain until a market resolves. FUTURAI does not custody these funds: they stay locked in the contract (typically in USDC) and are released automatically at settlement.

How easily positions can be opened or closed without moving the price.

Logarithmic Market Scoring Rule — a common pricing model for prediction markets.

A question about a verifiable event on which participants open YES/NO positions.

For contrast: in traditional odds run by third-party operators, there is a built-in operator cut baked into the price. In prediction markets like FUTURAI the price forms differently, from supply and demand, and resolution follows verifiable sources.

A trusted source or mechanism used to report an event outcome for resolution.

A YES or NO position taken in a prediction market.

The market-implied chance of an outcome, reflected by the price.

The process of settling a market against published criteria and sources.

Execution of payouts once a market resolves, on-chain where applicable and typically in USDC.

Code that enforces market rules and settlement without manual steps.

A standard position size, usually a small percentage of the bankroll.

The two sides of a position — YES profits if the event happens, NO if it does not.