How It Works · Pots Market

How Pots Market Works
Binary Markets. Verifiable Truth.

Every prediction on Pots Market resolves to two outcomes: Yes or No. Each outcome is an ERC1155 token, priced between $0.01 and $0.99. The price is the probability. Settlement is atomic, on-chain, and operator-independent.

Start Trading Pots Market Overview
Market: "Will X happen?"
Yes $0.65
+
No $0.35
= $1.00 · enforced by CTF contract
Key Takeaways
  • Yes + No = $1.00 always — enforced by smart contract, not convention
  • Token prices are direct implied probabilities: $0.65 Yes = 65% market confidence
  • All orders EIP-712 signed by user — operator cannot access funds
  • Shared Polymarket CLOB — world's deepest prediction market orderbook from day one
Token Structure

Yes + No = $1.00

Every prediction market produces two tokens. The sum of their prices always equals one dollar — guaranteed by the smart contract, not by any operator promise.

Yes Token ERC1155
$0.65

Wins if the event occurs. Pays $1.00 at resolution. Buying at $0.65 means you believe the event has >65% probability.

Resolution: $1.00
+ =
No Token ERC1155
$0.35

Wins if the event does not occur. Pays $1.00 at resolution. If Yes is at $0.65, No is always at $0.35.

Resolution: $1.00
$1.00 Collateral locked per pair
Token Operations

Three Fundamental Operations

Every interaction with a prediction market token reduces to one of three atomic operations.

01

Split

Convert $1 collateral into 1 Yes + 1 No token pair. Used to enter a market without taking a directional position — or to provide liquidity to both sides.

$100 pUSD → 100 Yes + 100 No
02

Merge

Convert a matched Yes + No pair back into $1 collateral. Used to exit a position without waiting for resolution, or to withdraw capital from a market.

100 Yes + 100 No → $100 pUSD
03

Redeem

After resolution, exchange winning tokens for $1 each. Losing tokens pay $0. Settlement executes through the CTF Exchange — no discretionary decisions.

100 winning tokens → $100 pUSD
Price Discovery

Prices Emerge from the Orderbook

No operator sets prices. The CLOB aggregates buy and sell orders from all participants — the market finds its own equilibrium.

1
Trader A places limit order: Buy Yes at $0.60
→
2
Trader B places limit order: Buy No at $0.40
→
3
Match: $0.60 + $0.40 = $1.00 → Orders fill, $1 splits into 1 Yes (→ A) + 1 No (→ B)
Price → Implied Probability
$0.25
25% confidence
$0.50
50% confidence
$0.75
75% confidence
$0.96
96% confidence
Settlement

On-Chain, Operator-Independent

All matched trades settle atomically on Polygon via the CTF Exchange contract, audited by ChainSecurity.

EIP-712 Signed

Every order is cryptographically signed by your private key. Pots Market routes orders — it cannot modify or forge them.

Atomic Settlement

Trades settle in full or not at all. There is no partial execution that could leave one party exposed. Polygon confirms in seconds.

Audited Contracts

CTF Exchange audited by ChainSecurity. Gnosis Conditional Token Framework is battle-tested across billions in prediction market volume.

Fully Verifiable

Every order carries a builderCode serialized on-chain. Any participant can verify that their order was routed correctly and settled without modification.

Comparison

Pots Market vs Direct Polymarket

At the settlement layer, there is no difference. Pots Market adds functionality on top — not between you and settlement.

Pots Market (Builder)
Direct Polymarket
Orderbook
Same shared CLOB
Same shared CLOB
Settlement
CTF Exchange on Polygon
CTF Exchange on Polygon
Custody
Non-custodial (user signs)
Non-custodial (user signs)
Gas fees
Gasless via Builder Relayer
Gasless (logged-in users)
POTS rewards
Tips + Tier rebates + Referral
Not available
FAQ

Common Questions

Frequently Asked Questions

01 What does Yes + No = $1 mean?
Every pair is backed by exactly $1 of collateral locked in a smart contract. If Yes trades at $0.65, No trades at $0.35. This is not a convention — it is enforced by the Gnosis Conditional Token Framework.
02 How does price discovery work on the CLOB?
Buyer places limit order at $0.60 for Yes. Seller places limit order at $0.40 for No. $0.60 + $0.40 = $1.00, orders match, $1 splits into 1 Yes + 1 No token. Offchain matching for speed, onchain settlement for security.
03 Can the operator access my funds?
No. All orders are EIP-712 signed by your private key. The operator cannot set prices, execute unauthorized trades, or move funds. Settlement is atomic via the CTF Exchange contract audited by ChainSecurity.
04 What happens at market resolution?
Winning tokens pay $1.00 each. Losing tokens pay $0. Redeem through CTF Exchange: 100 winning tokens → $100 pUSD. No discretionary payouts — all on-chain.
05 What is the difference between a market and an event?
An event is the overarching question. A market is one binary outcome within it. A single-market event has one Yes/No pair. A multi-market event (election) has one Yes/No pair per candidate.
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