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How It Works

PMF separates distribution, custody, pricing, and execution. Investors interact through Authorized Participant quotes, the vault enforces share accounting and settlement onchain, and solvers execute the prediction market exposure needed to keep the product aligned with its mandate.

Simplified PMF protocol flow

End-To-End Flow​

  1. The Index defines the approved market basket and target exposure.
  2. The Authorized Participant checks policy, capacity, NAV, signer, and routing state before producing a short-lived quote.
  3. The investor's wallet submits the quoted approval and vault transaction.
  4. The vault validates the AP signature, deadline, replay keys, settlement asset, and accounting rules before minting or redeeming shares.
  5. As capital and market conditions change, the vault exposes order intents tied to the latest basket and mandate.
  6. Solvers execute those intents on prediction market venues and report enough evidence for reconciliation.
  7. Reconciliation updates holdings, NAV, capacity, and quote readiness for the next cycle.

Operating Pages​

The Authorized Participant

The quoting and policy boundary that prices creation and redemption flow.

The Vault

The on-chain product boundary that holds funds, issues shares, and enforces settlement rules.

Solvers

The execution layer that purchases and unwinds contracts directly on prediction-market venues.