Documentation

Contract-accurate reference for all market rules, fee structures, and decentralized resolution mechanics.

Contract: 0x... · Base Mainnet

01What Is Prediction Battle

Prediction Battle is a non-custodial prediction market running fully on the Base blockchain. All funds are held exclusively by a verified smart contract. No central authority can freeze, move, or confiscate your stake (the only exception being explicitly defined slash conditions).

Markets are structured as binary disputes between two sides (e.g., Creator A vs Creator B, Ethereum vs Solana this quarter, Will @user hit 1M followers before @other?). Participants stake USDC on the side they believe will win. Winners claim a share of the losing pool.

No House Edge. The protocol only takes a fixed fee percentage from profits. It never bets against you, so there is zero counter-party risk.

02Markets & Creation Rules

Who Can Create

Any connected wallet can create a market. There is a 1-hour cooldown between market creations per address (anti-spam).

Creation Requirements

Seed Liquidity (minimum 1 USDC): The creator must deposit a USDC seed to bootstrap the market. This amount is NOT part of the betting pool and is fully refundable to the creator after market resolution. It is held separately by the contract.
Question: Must be between 10 and 500 characters.
Deadline: A future timestamp after which no new bets are accepted and the result can be proposed. Markets with no deadline ("open-ended") accept bets until someone proposes the first outcome.

Market Types

⏱ Time-Bound Market

Has an explicit expiration. Result can only be proposed after the deadline. Examples: "Who gets more retweets this week?", "Who posts first on Sunday?"

🔓 Open-Ended Market

No deadline. Anyone can propose the result at any time. Creator must wait 24h after creation before proposing. Great for events with no fixed end date.

Examples of Valid Markets

🏛️
Politics: Who will get more mentions on X this month: Trump or Biden?
⛓️
Crypto Tribalism: Which chain will have more active wallets in Q2: Solana or Ethereum?
📱
Social Warfare: Will @elonmusk's next post get more likes than @MrBeast's next YouTube link on X?
🎭
Influencer Drama: Who will hit 10M followers on X first: Creator A or Creator B?
🏆
Sports Predictions: Which team's announcement post will get more shares this weekend?

Market Cap: The maximum total betting pool per market is 1,000,000 USDC. No single bet may exceed 100,000 USDC.

03Betting & Liquidity Mechanics

Bet Limits

Minimum bet: 0.05 USDC
Maximum bet: 100,000 USDC
Bets can only be placed while the market is in OPEN state and before the deadline.
You may bet multiple times on the same market and same side. Each bet accumulates your position.

How the Multiplier Works (Pari-Mutuel System)

Your USDC goes directly into the liquidity pool of the side you chose. There are two separate pools: Side A Pool and Side B Pool. If your side wins, you are entitled to a proportional share of the losing side's pool.

Your payout multiplier is determined entirely by the ratio of the two pools at market close:

// Simplified formula

yourShare = (yourBet / totalWinningSidePool) × totalLosingPool

grossPayout = yourShare + yourOriginalBet

netPayout = grossPayout - 21% fees (on profit only)

Numerical Example

🏗️ Setup

Side A pool: $200 USDC
Side B pool: $1,000 USDC
Your bet: $100 on Side A
Your share of Side A: 100 / 300 = 33.3%

✅ If Side A Wins

Your slice of losing pool: 33.3% × $1,000 = $333
Gross payout: $333 + $100 = $433
Profit: $333 → 21% fee = ~$70
Net payout: ≈ $363 USDC

Early Bird Bonus

Bets placed during the Bonus Window (a time range defined by the creator at market creation) receive up to 1.2x the shares compared to bets placed after the bonus period. This rewards early participants for taking on greater uncertainty.

Shares determine your proportional claim on the winning pool. More shares = bigger slice of the pie. After the bonus window closes, all new bets receive 1.0x shares.

04Fee Structure

All fees are deducted only from the profit (i.e., from the losing side's pool before it is distributed to winners). Your original stake is never subject to fees.

Recipient	Rate	Who
Protocol Treasury	10%	Maintenance, security, development
Market Creator	5%	The wallet that created the market
Referrer	5%	Wallet that referred the winning bettor (if any)
Result Reporter	1%	Whoever proposed the correct final outcome on-chain
Total	21%	Applied to the profit portion only

If no referrer was recorded for a winning bettor, the 5% referrer share stays in the pool and gets distributed to all other winners, increasing their payout.

05Winning, Losing & Scenarios

If You Win

You receive 100% of your original stake back.
You receive a proportional share of the losing side's pool.
From that profit, 21% is deducted in fees (see Section 4).
Your net USDC is available to claim on your Profile page once the market is finalized.

If You Lose

You lose 100% of your staked USDC. Your funds are immediately locked in the contract and transferred to the winning pool for distribution. There is no partial refund and no cancellation after a bet is placed.

DRAW (Technical Tie)

If the market resolves as a technical draw (e.g., exact tie in a measurable metric), all bettors on both sides receive their original stake back in full. The protocol does NOT collect fees on a draw.

CANCELLED (Admin Void)

If an admin cancels the market (e.g., the subject became unverifiable, or the market was fraudulently created), all participants receive 100% of their stake back. Gas fees spent placing bets are not refunded.

One-sided Market (No Losers)

If a market resolves and the losing side had $0 in bets (everyone bet on the same side), there is no losing pool to distribute. All participants simply receive their original stake back, net of nothing.

06Decentralized Resolution

Market resolution does not depend on a central server or oracle. It uses a Bond-backed proposal system where economic incentives punish dishonest reporters.

Proposal (Verification)

After the market deadline, any user clicks "Verify / Approve Result". They must submit a Bond starting at 5 USDC (scales with total pool size) along with a link to evidence (e.g. a screenshot or archive URL).

The proposer defines the winning side. The market immediately enters the PROPOSED state.

12-Hour Dispute Window

The market is frozen in PROPOSED state for exactly 12 hours (43,200 seconds). During this time, anyone who believes the result is incorrect can submit a Challenge.

To challenge, the disputer must deposit a bond at least equal to the original proposal bond. The proposer cannot challenge their own proposal.

Finalization (No Dispute)

If the 12-hour window passes without a challenge, any user can call "Finalize Market". The proposed outcome is locked on-chain permanently. The proposer receives:

Their full bond returned.
The 1% Reporter Reward from the market's profit pool.

Admin Arbitration (If Disputed)

If a challenge is submitted, the market enters DISPUTED state. An admin (or in future, a DAO) reviews both evidence URLs and decides the correct outcome.

The honest party gets their bond back + 80% of the liar's bond as a bounty reward.
The dishonest party loses their entire bond. 20% goes to the protocol treasury.
The winning party also inherits the 1% Reporter Reward.

07Punishment & Slashing

⚠️ Slashing is irreversible. Once a slash is executed on-chain, funds are permanently confiscated and sent to the protocol treasury. There is no appeal process after on-chain execution.

1. Bond Slashing (Dishonest Reporter)

If a user submits a false outcome proposal and is successfully challenged and overturned in arbitration, they are slashed:

The liar loses 100% of their bond.
80% of that bond is awarded to the honest challenger as a bounty.
20% is permanently sent to the protocol treasury.

2. Seed Confiscation (Fraudulent Market Creator)

If an admin determines that a market was created with fraudulent intent (e.g., designed to deceive bettors, with manipulated subject matter, or citing fabricated content), the creator's seed deposit is permanently confiscated:

The creator's seed (minimum 1 USDC, can be any deposited amount) is transferred in full to the protocol treasury.
The creator loses all right to recover their seed.
Bettors of the market are protected: their stakes are refunded and the market resolves as CANCELLED.

What Triggers a Slash?

Submitting a false result as a verifier/proposer.
Creating a market with fabricated or unverifiable questions designed to steal bets.
Collusion attempts detected by the arbitration process.

The slash mechanism exists to make dishonest behavior more expensive than honest behavior. The bond requirement scales with pool size, so attempting to manipulate a large market requires a proportionally large bond at risk.

08FAQ

Can I cancel my bet?

No. Blockchain transactions are immutable. Once your stake is submitted to the contract, it is locked until the market resolves. Bets cannot be reversed.

Can I bet on both sides?

Technically yes, but the contract treats each side independently. Betting on both sides does not create arbitrage; you will simply win on one side and lose on the other, netting negative due to fees.

What happens if the market expires but no one verifies it?

The market stays in OPEN state indefinitely until someone submits a proposal. There is an Emergency Timeout of 30 days after which the admin can force-void the market and refund all bettors.

Who gets the creator fee if the creator is slashed?

If the creator was slashed (fraudulent market), the market is cancelled. No fees are collected on cancelled markets, so all bettors receive 100% refunds.

Is there a fee to create a market?

No protocol fee for creation. You only need to deposit the Seed (min 1 USDC). That seed is returned to you after resolution. You will pay a small gas fee (~$0.01 or less on Base).

Can the same wallet bet multiple times on the same market?

Yes. Multiple bets from the same wallet on the same side are accumulated into a single position. You cannot bet on both sides with the same wallet.

What is the minimum to participate?

The minimum bet is 0.05 USDC. The minimum to create a market is a 1 USDC seed deposit.

Is this legal in my country?

Prediction markets are speculative instruments under DeFi. Their legal classification varies by jurisdiction. Consult local regulations before participating.