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Core Concepts

Understanding these core concepts will help you navigate and succeed on the PMF Finance platform.

Prediction Markets​

Prediction markets are financial markets where participants trade on the outcomes of future events. These markets harness collective intelligence to forecast everything from election results to sports outcomes.

How They Work​

  • Participants buy and sell shares representing different outcomes
  • Share prices reflect the market's collective belief about outcome probability
  • Markets resolve when the actual outcome is determined

Prediction Market Funds (PMFs)​

PMFs are managed investment vehicles that trade across multiple prediction markets using specific strategies developed by experienced traders called "Writers."

Key Features​

  • Diversification: Spread risk across multiple markets
  • Professional Management: Managed by experienced Writers
  • Transparency: All trades and performance metrics are publicly visible
  • Accessibility: Lower barriers to entry than direct market trading

User Roles​

Traders​

Individual users who trade directly on prediction markets or invest in PMFs.

Writers​

Experienced traders who create and manage PMFs. Writers must demonstrate expertise and maintain performance standards.

Managers​

Administrative users who oversee platform operations and Writer applications.

Order Types​

Market Orders​

Execute immediately at the best available price.

Limit Orders​

Execute only when specific price conditions are met.

PMF Orders​

Special orders that invest in or redeem from Prediction Market Funds.

Performance Tracking​

Leaderboards​

Rank users based on various performance metrics over different time periods.

Analytics​

Comprehensive performance tracking including profit/loss, win rates, and risk metrics.

Next Steps​

Now that you understand the core concepts, you're ready to: