What a prediction market is
A prediction market turns a question about the future into something you can trade. Each possible answer carries a probability price between 0 and 100. A YES priced at 64 means participants currently give the event a 64% chance; the NO side is priced at the remaining 36. When the event resolves, the correct answer is worth 100 and every other answer is worth 0.
On PolySouq you buy the answer you believe in: YES or NO on a two-sided question, or one of several answers on a multi-outcome event. The platform is buy-only, so a position is held until the event settles. Most catalogue events have three or more answers; the price windows on Bitcoin, gold or EUR/USD are simple Up/Down questions.
What you can trade on PolySouq
Three families: price windows on crypto, forex and commodities; football fixtures; and multi-outcome events on politics, economics and technology. Every price window asks one question: will the price at the end of the window be higher than at the start?
PolySouq markets at a glance
| Market | Example | Window / type | Where to open it |
|---|---|---|---|
| Bitcoin | BTC Up or Down in the next 5 minutes | 5-minute, 4-hour, daily, weekly, monthly | Bitcoin 5-minute windows |
| Ethereum | ETH Up or Down in the next 5 minutes | 5-minute, 4-hour, daily, weekly, monthly | Same crypto section |
| EUR/USD | Pair higher at the end of the window? | Up/Down windows | Forex and commodity windows |
| USD/JPY | Pair higher at the end of the window? | Up/Down windows | Same forex section |
| Gold (XAUUSD) | Gold higher at the end of the window? | Up/Down windows | Same forex section |
| Oil (USOIL) | Crude higher at the end of the window? | Up/Down windows | Same forex section |
| Champions League | Match winner per fixture | Match-winner markets | Champions League |
| Premier League | Match winner per fixture | Match-winner markets | Premier League |
| La Liga | Match winner per fixture | Match-winner markets | La Liga |
| Ligue 1 | Match winner per fixture | Match-winner markets | Ligue 1 |
| Serie A | Match winner per fixture | Match-winner markets | Serie A |
| Bundesliga | Match winner per fixture | Match-winner markets | Bundesliga |
How the payout works: a worked example
PolySouq settles every event parimutuel: the money staked on each answer sits in its own pot, and when the event resolves everyone who backed a correct answer splits all the money staked on incorrect answers, minus a 10% commission taken only from the losing side. No spread, no leverage, no deposit fee, no monthly fee. Your maximum loss is the amount you staked.
Suppose a market holds $600 on YES and $400 on NO, and YES wins. The losing pot is $400; the commission is 10% of it, $40; the remaining $360 goes to the YES side in proportion to each stake. A $100 YES stake is one sixth of the $600 pot, so it receives one sixth of $360, which is $60: that participant gets back $100 + $60 = $160. Every NO stake receives $0.
If nobody backed a losing answer, for instance because you were alone on the market, there is no losing pot and every stake is refunded in full. Voided markets are also refunded in full.
Worked example: $100 on YES, pools of $600 YES / $400 NO
| Line | Amount | How it is calculated |
|---|---|---|
| Losing pot (NO) | $400 | Everything staked on NO |
| Commission | $40 | 10% of the losing pot only |
| Distributed to YES | $360 | $400 − $40 |
| Share for a $100 YES stake | $60 | $100 ÷ $600 × $360 |
| Returned to that wallet | $160 | $100 stake + $60 |
| If NO had won | −$100 | Maximum loss = the stake |
| If nobody had backed NO | $100 | Full refund, no losing pot |
Prediction market vs leveraged trading
A prediction market and a leveraged trade can express the same view with a very different risk profile. The table compares what happens to your money.
PolySouq prediction market vs a typical leveraged trade
| Feature | PolySouq | Typical leveraged trading |
|---|---|---|
| Leverage | None | Typical, often high |
| Maximum loss | The amount you staked | Margin call; losses can exceed the initial margin |
| Costs | No spread; 10% commission on the losing pot only | Spread, commission and overnight swap |
| Holding period | Held to settlement | Any time |
| Funding | USDC on Polygon, from $5 | Card or bank transfer |
