How InterPredict Works

A User's Guide to Decentralized Prediction Markets

Quick Start Guide

1. Connect Your Wallet

Connect using any Web3 wallet compatible with the Interlink network.

2. Browse or Create Markets

Browse existing prediction markets or submit your own market proposal for committee review.

3. Trade Positions

Buy or sell YES/NO tokens on any approved market, with prices determined by supply and demand.

4. Hold & Settle

Hold your position until market resolution, then claim your winnings. Losing positions expire worthless.

Creating a New Market

What Makes a Good Market Proposal?

InterPredict markets must have clear, unambiguous resolution criteria. Here's what the Governance Committee looks for:

  • Clear Event Statement: "Will Bitcoin close above $50,000 on December 31, 2026?" is good. "Crypto will moon" is not.
  • Verifiable Outcome: The event outcome must be determinable from publicly available information (news, official announcements, etc.).
  • Specific Timeline: Include exact dates and times for event resolution.
  • Measurable Resolution Criteria: Define precisely how YES/NO will be determined (e.g., which data source will be used).
  • No Ambiguity: Avoid proposals that could be interpreted multiple ways.

Market Proposal Form

When submitting a market proposal, you'll provide:

  • Event Title: Short, descriptive name (e.g., "BTC Price Above $50K by EOY 2026")
  • Event Description: Detailed explanation of what the market is predicting
  • Resolution Date: When the event outcome will be determined
  • Resolution Source: Where the Committee will verify the outcome (e.g., CoinGecko, official press release)
  • Liquidity Amount: Initial seed funding for the market's liquidity pool
  • Category: Politics, Finance, Technology, Sports, etc.

What Happens After You Submit?

Step 1: Initial Review (24-48 hours)

The Committee checks for completeness, clarity, and compliance with platform standards.

Step 2: Duplicate Check

Committee verifies there isn't already an identical or very similar market.

Step 3: Committee Vote

Committee members vote to approve or reject. Supermajority (66%+) approval required.

Step 4: Market Launch

Approved markets go live and become available for traders within hours.

Trading on InterPredict

Understanding Tokens & Pricing

Each market has two tokens: YES and NO. When you buy a YES token at a price of $0.60, you're betting that outcome has a 60% probability. The NO token would be priced at $0.40 (totaling $1.00).

  • YES Token: Worth $1.00 if the event occurs; worthless if it doesn't.
  • NO Token: Worth $1.00 if the event doesn't occur; worthless if it does.
  • Price = Probability: A YES token priced at $0.75 means the market believes there's a 75% chance of that outcome.

Order Types & Trading Strategies

InterPredict uses a Central Limit Order Book (CLOB) model similar to traditional stock exchanges:

  • Market Order: Buy or sell immediately at the current best price.
  • Limit Order: Specify the price you're willing to buy/sell at; order executes when the market reaches that price.
  • Simple Strategy: Buy low-priced tokens (high-risk, high-reward) or high-priced tokens (low-risk, lower-reward).
  • Advanced Strategy: Provide liquidity by maintaining both buy and sell orders across multiple price levels (market making).

Risk Considerations

Remember: Prediction markets are high-risk assets.

  • You can lose 100% of your investment if your prediction is wrong.
  • Markets can be illiquid, making it difficult to exit large positions.
  • Market prices can be highly volatile, especially as the resolution date approaches.
  • Only trade with money you can afford to lose.

Market Resolution & Settlement

How Markets Resolve

When a market's resolution date arrives, the Committee reviews the event outcome based on predefined criteria:

  1. Committee gathers evidence from the specified resolution sources
  2. Members review and discuss the evidence
  3. Committee votes on the correct outcome (YES or NO)
  4. If supermajority (66%+) agrees, the market resolves
  5. Winning tokens become redeemable for $1.00 each
  6. Losing tokens expire worthless

What If You Disagree with the Resolution?

If you believe the Committee made an incorrect decision, you can file a dispute:

  • Provide Evidence: Submit documentation supporting your position.
  • Committee Reconsideration: The Committee reviews your dispute with fresh perspective.
  • Override Threshold: If 75%+ of Committee members agree with you, the market is re-resolved.
  • Transparent Records: All dispute discussions are recorded on-chain.

Claiming Your Winnings

After resolution, you can redeem your winning tokens:

  • Navigate to the closed market
  • Click "Redeem Winning Tokens"
  • Confirm the transaction
  • Funds are transferred to your wallet immediately

Participating in Governance

The Governance Forum

While the Committee makes formal decisions, the community discusses and votes on proposals in the Governance Forum:

  • Propose protocol changes and improvements
  • Suggest new features for future versions
  • Challenge Committee decisions
  • Vote on non-binding community preference measures

Becoming a Committee Member

Future versions of InterPredict will enable community members to become Committee members based on:

  • Reputation and trading history on the platform
  • Community voting and approval
  • Domain expertise in relevant fields
  • Commitment to fairness and transparency

Want to Learn More?

For technical details about how markets settle, pricing mechanics, and the governance structure, see the Whitepaper.

To join discussions and participate in governance voting, visit the Governance Forum.

Frequently Asked Questions

Q: What if a market never resolves?

A: If the event never occurs or the resolution criteria aren't met, the Committee will make a final decision based on the evidence available. This is covered in detail in the Whitepaper.

Q: Can I short predict?

A: Yes! Buying NO tokens is the same as shorting. You profit if the outcome doesn't occur.

Q: How do I know market prices are fair?

A: Prices are determined by supply and demand, just like stock exchanges. As new information emerges, prices adjust. Market makers help maintain liquidity and tight bid-ask spreads.

Q: Is InterPredict regulated?

A: InterPredict is a decentralized protocol. Regulatory status varies by jurisdiction. See our Risk Disclosure and Terms of Service for important disclaimers.

Q: What if I think there's market manipulation?

A: Report suspicious activity to the Committee through the Governance Forum. All trading is recorded on-chain and can be audited.

InterPredict Version 1.0: This documentation reflects the initial release. As the protocol evolves with Version 2.0 and beyond, additional features like categorical markets, scalar markets, and enhanced governance will be added.

Last updated: June 2026