Learn - How PrymeBridge Works

What is PrymeBridge?

PrymeBridge is a skill-based prediction market platform where you can profit from your expertise by accurately predicting future events. Get rewarded for what you know.

Why PrymeBridge Matters

Our platform rewards expertise and informed decision-making. Whether you're an industry expert, a skilled analyst, or someone with deep knowledge in specific areas, PrymeBridge allows you to monetize your insights and expertise.

Skill-Based Trading

Success depends on your ability to analyze information and make accurate predictions
Better research and analysis leads to better trading decisions
Your expertise in specific fields gives you a competitive advantage
Rewards are proportional to both your conviction (stake size) and accuracy

How It Works

Trading Basics

Buy and sell shares representing future event outcomes
Share prices are determined by an Automated Market Maker (AMM) using the LMSR model
Winning shares are paid out proportionally from the losing side's pool

Example Payout

Let's say for a market:

Total YES pool: $1000 (from multiple traders)
Total NO pool: $500
You bought $100 worth of YES shares

If YES wins:

Your share of the winning pool = $100/$1000 = 10%
Your payout = Your original bet ($100) + 10% of losing pool ($50)
Total payout = $150 (minus platform fee)

Note: Actual payouts depend on the size of the losing pool and your proportion of winning shares.

Understanding Prices

Share prices are determined by the LMSR model, which adjusts based on the number of shares bought or sold. This ensures that prices reflect the market's collective belief about the probability of an event occurring.

Prices are influenced by supply and demand, and the LMSR model ensures liquidity and price stability.

Making Money

There are two main ways to profit:

1. Hold Until Resolution

Buy shares at a low price and hold them until the market resolves. If you're correct, your payout is based on the losing pool size and your share of the winning side.

2. Trade Price Movements

Buy shares when you think they're undervalued and sell them at a higher price before the market resolves. This allows you to profit from price changes.

How Markets Are Created

Markets are created by our admin team to ensure quality and clarity.

Market Creation Guidelines

Clear, unambiguous questions
Specific resolution dates
Verifiable outcomes
Detailed resolution criteria

How Markets Are Resolved

Markets are resolved based on real-world outcomes when the resolution date is reached.

When a market resolves, winning shares are paid out based on the size of the losing pool. The payout is proportional to the number of shares you hold relative to the total winning shares.

Resolution Process

Market reaches its resolution date
Admin team verifies the outcome
Market is resolved to YES or NO
Winning shares are paid out from the losing pool, minus platform fees

Market Accuracy

PrymeBridge is built on the principle that skilled prediction should be rewarded. Our markets are powerful forecasting tools because they:

Reward expertise and skilled analysis
Allow specialists to profit from their domain knowledge
Incentivize thorough research and careful analysis
Aggregate informed opinions into market prices
Update in real-time as new information becomes available

Exiting Positions Early

You don't have to wait until market resolution to exit your position.

How to Exit Early

You can sell your shares at any time before the market resolves by:

Selling at the current market price
Setting your own sell price

Early exits allow you to lock in profits or minimize losses based on new information.

What are Prediction Markets?

Prediction markets are platforms where people collectively forecast the future through trading.

Key Concepts

Market Prices = Probabilities

Share prices directly represent event probabilities. A price of $0.75 means a 75% chance.

Free Market Trading

Trade any time before resolution as new information becomes available.

Why Trust Prediction Markets?

Unbiased real-time probabilities
Participants are financially motivated to be accurate
Aggregates collective wisdom of traders
Often more accurate than traditional polls

Example: How It Works

If you believe an event has a higher probability than the current market price suggests:

Buy shares at the current price (e.g., $0.20)
If correct, shares pay out $1.00 each
Profit = $0.80 per share ($1.00 - $0.20)

📚 Learn