❔FAQ
What is Expectium?
Expectium is an information markets platform that lets you trade on the world’s most highly-debated topics (e.g. politics, current events, etc). On Expectium, you build a portfolio based on your forecasts and earn a return if you are right. When you decide to buy shares in a market, you are weighing in with your own knowledge, research, and view of the future. Market prices reflect what traders think are the odds of future events, turning trading activity into actionable insights that help people make better decisions. As a result, Expectium is a leading source of unbiased and real-time data about future events.
What is the Information Market?
An information market is a type of financial market that allows participants to buy and sell contracts based on the outcome of future events, such as political elections, sports matches, or the price of a commodity. The prices of the contracts reflect the market's estimate of the probability of the event occurring, based on the collective knowledge and opinions of the participants. It's similar to options trading on ordinary derivative exchanges.
What is the Share NFTs?
Share NFTs are unique revenue distribution system for Expectium. NFT holders will be share holder of whole system. They will earn platform fees directly as their NFT count.
All event contracts in Expectium will have a transaction fee from all trades made on that contract (like DEX swap fees). A specific percentage of these fees directly distributed to Share NFT holders distribution contract. There will be 10.000 Share NFTs total. For example if you are holder of 100 Share NFTs, it means you will earn %1 of all platform fees taken. Fees can be withdrawn directly from smart contract whenever you want.
Who sets the probabilities on a market?
The prices of shares in each market reflect the probabilities of the outcomes. Shares are valued between $0.00 and $1.00 and prices change depending on traders’ collective beliefs on the likelihood of the market resolving in either direction. For instance, if the price for a “Yes” share is $0.75, then the market believes the probability that the event will occur is 75%.
What are the diffrent types of markets?
There are 3 types of markets that currently exist:
Binary - A market with two options that will resolve either $1 or $0. (ex: Will Tetranode have over 100k Twitter followers by 12/31/2025? YES/NO)
Categorical - A market with multiple options that will resolve either $1 or $0. (ex: What ice cream will have the most sales in 2025? Chocolate/Vanilla/Strawberry/Other)
Scalar - A market that resolves to where the final value sits between a lower and upper bound.
What will the population of Spain be in their upcoming census (47M-55M)? Long/Short)
If the population is 50M, the outcomes will resolve to: Long = $0.375 & Short = $0.625
What is the earning mechanism of Expectium?
On Phase 1 stage of development, Expectium has a simple mechanism to let people get used to system easier. People will buy shares of the option they forecasts from market which works like ordinary DEX AMMs. Accepted fund to buy option shares is USDC.
When market resolves, which means event result occurs. True options will be redeemed for 1$ USDC, while wrong option worths nothing. On Phase 2 of Expectium. We aim to change AMM system to orderbook.
What happens when a market resolves?
When a market resolves, correct shares can be redeemed for $1.00 each. All other shares will be worth nothing.
Can I create my own prediction pool?
Yes, of course, within some rules.
What types of events and outcomes can I trade on Expectium?
Anything. Elections, asset prices, financial, you name it.
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