Prediction Protocol

The Prediction Protocol is the onchain system responsible for market state and user funds. Other layers may propose or prepare actions, but only protocol rules can accept positions and finalize value movement.

Core responsibilities

create a market from an approved frozen specification;
accept native-asset stakes before entry closes;
account for 2–32 named outcome pools;
reject duplicate or late submissions;
bind settlement to the frozen rule hash;
finalize one outcome or void the market;
pay winners or return voided principal;
emit events for indexing and reconciliation.

Diamond architecture

Pools Markets uses an ERC-2535 Diamond architecture so protocol functionality can be separated into facets behind one stable protocol address. The deployed facet set, selectors and ownership configuration are part of the release manifest.

The architecture does not remove upgrade risk by itself. A production deployment must document:

the Diamond address and chain;
installed facet addresses and selector mapping;
upgrade authority and delay, if any;
resolver and settlement authority;
verified source code and deployment transaction;
emergency capabilities and their limits.

Idempotency

Market creation, position submission, settlement and payment require stable identifiers and replay protection. Retried workers or duplicate network requests must not create duplicate value movement.

Payout execution

Result finalization and payout execution are separate operations. This avoids requiring one settlement transaction to iterate over every position in a large market. Workers can process payable positions, and retries use the same onchain result and accounting state so they cannot produce a second payment or a different amount.