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How the Prediction Market Platform Works: Event Contracts, Settlement, and More

Understanding the mechanics behind a prediction market takes a few minutes, but it changes how you approach every position you open. This page walks through each layer of the platform - from what you are actually trading, to how outcomes are decided, to when settled funds appear in your account.

If you have ever used a traditional sportsbook or exchange, some concepts will feel familiar. Others - particularly the role of the ADI blockchain and USDC settlement - are specific to how prediction markets work on Adi Predict Street, and are worth reading carefully before you place your first order.

What Is an Event Contract

An Event Contract is the instrument you trade on the platform. Each contract is linked to a real-world Event - a sports result, a political outcome, a financial threshold - and it has exactly two possible endings: it settles in the money, or it expires worthless. There is no middle ground and no partial payout.

The way prediction markets work on Adi Predict Street's platform is built around this binary structure. You are not placing a fixed-odds bet with the house; you are acquiring a contract whose value moves as other users trade it, and whose final settlement depends entirely on what happens in the real world.

Before you open any position, it helps to know the core characteristics of every Event Contract on the platform:

  • Linked to a single, specified real-world Event with a defined outcome
  • Binary structure: settles in-the-money or expires worthless, with no partial settlement
  • Priced by collective user trading activity, not by the Company
  • Traded through the platform's order book against other users
  • Settled in USDC and credited to your account after market resolution
  • Subject to the Market rules and Resolution Source designated for that specific Market

The table below shows what each possible outcome means for your position at the moment a Market resolves:

Outcome typeWhat happens to your positionSettlement result
In-the-moneyEvent resolves in your favourProceeds credited to account in USDC
Expire worthlessEvent resolves against your positionFull loss of amount invested in that position
Market voidedEvent cancelled or Resolution Source unavailableStakes returned per applicable Market rules

How the Order Book Matches Positions

Every order you submit goes into the platform's order book, where it waits to be matched against an order from another user taking the opposite position. The Company facilitates this matching process but does not itself take the other side of your trade - except in specific Markets where this is disclosed in advance.

There is no guarantee that your order will be matched. If no other user is willing to take the opposite position at your price, your order will remain unmatched. This is why checking the order book depth before placing a large order matters, especially on less-traded Markets. Once you are comfortable with the mechanics, browsing the available prediction markets gives you a clearer sense of where liquidity tends to concentrate.

Here is the sequence of events from the moment you submit an order to the moment a position is confirmed:

  1. You submit an order specifying the contract, direction, quantity, and price
  2. The platform scans the order book for a matching order from another user
  3. If a match is found at your price, the position is opened and both sides are confirmed
  4. If no match is found, the order remains open in the book until matched, cancelled, or expired
  5. Your open position appears in your account under your active positions

How Event Contract Prices Are Set

The price of any Event Contract at a given moment reflects the collective trading activity of all users participating in that Market. It is not a probability estimate made by the Company, and it is not a recommendation to buy or sell. The Company does not endorse any particular price level or outcome.

Prices can be influenced by information asymmetries between users, liquidity conditions, speculative activity, and the presence of professional or algorithmic traders. Between the time you submit an order and the time it is executed, the price may move. You may end up acquiring a position at a less favourable price than you intended - this is normal in any order-book market and is not an error.

How Markets Are Resolved

When the Event linked to a Market occurs, the Company resolves the Market by reference to the designated Resolution Source. This source is specified in the Market rules before trading opens. Understanding how market resolution works on the platform is important because the Company's determination is final and binding on all users, except in the case of a manifest error as defined in the Terms.

You cannot challenge a settlement simply because you disagree with the outcome or the source used, provided the determination was made in accordance with the applicable Market rules. The Company's full resolution procedures are set out in the Trading Rules Policy, which is published on the platform.

Resolution Sources used by the Company include:

  • Third-party data providers and commercial data feeds
  • Official statistical bodies and governing organisations for the relevant Event
  • Oracles that relay verified real-world data to the platform
  • The Trading Rules Policy, which governs how ambiguous or disputed data is handled
  • Internal review where exceptional circumstances require additional verification

The table below outlines the main stages of the resolution process:

StageTriggerCompany action
Event occursReal-world outcome is determinedResolution Source data is retrieved and verified
Outcome confirmedData matches the specified outcome criteriaMarket is resolved; settlement proceeds calculated
Settlement creditedResolution is finalisedUSDC proceeds credited to winning users' accounts
Delayed resolutionData unavailable or verification requiredResolution postponed; no interest accrues on pending funds

What Happens When a Market Is Voided

A Market may be voided or cancelled in circumstances where it cannot be settled fairly or in accordance with the platform's rules. When a Market is voided, your stakes are returned to your account in line with the applicable Market rules. You do not receive any profit, but you also do not lose your original position amount.

The Company may void a Market in any of the following situations:

  • The Event is cancelled, postponed beyond the specified date, or does not occur
  • The Resolution Source is unavailable, produces ambiguous results, or is compromised
  • Evidence of manipulation, collusion, or insider trading is identified
  • Continuing or settling the Market would conflict with Applicable Law or licence conditions
  • Exceptional circumstances make it impracticable or unfair to proceed

The table below maps the most common void triggers to what you should expect:

Void triggerExampleOutcome for you
Event cancelledMatch abandoned due to weatherStakes returned per Market rules
Resolution Source unavailableOfficial data feed goes offlineStakes returned; no profit or loss
Manipulation detectedCoordinated wash trading identifiedMarket voided; matter may be escalated
Regulatory conflictApplicable Law changes after Market opensStakes returned; Company not liable for lost opportunity

USDC Settlement: How Winnings Reach Your Account

After a Market resolves in your favour, the settlement proceeds are credited to your account in USDC. USDC is a fiat-backed stablecoin issued by Circle Internet Financial LLC, designed to maintain a value of one United States Dollar. The platform uses USDC as its primary settlement currency because it combines the speed and finality of blockchain settlement with a relatively stable unit of account.

It is worth noting that the USDC peg is not guaranteed at all times. Risks include potential depegging, issuer insolvency, or adverse regulatory action against Circle Internet Financial LLC. The Company has no control over the operations of the issuer, and any loss of value in USDC arising from such events is borne by you. Before placing your first order, reviewing the trading and settlement fees helps you calculate your net return after resolution.

The USDC settlement process for Event Contracts follows these steps from resolution to your account:

StepActionWhere to see it
1 - Resolution confirmedCompany finalises outcome using Resolution SourceMarket status updates in your account
2 - Settlement calculatedProceeds calculated per Market rules, fees deductedTransaction detail in account history
3 - USDC creditedNet settlement amount added to your account balanceAccount - Balance or Wallet section
4 - Available for withdrawalFunds available to withdraw once KYC requirements are metAccount - Cashier/Wallet - Withdrawals

The ADI Blockchain and Why It Matters

The platform operates on and interacts with the ADI blockchain, a permissioned distributed ledger network. Unlike public blockchains, access to and participation in the ADI network is subject to governance controls. This means the network is not open to all participants - it is managed, which reduces certain risks but introduces others related to governance changes by network operators.

Once a transaction achieves finality on the ADI blockchain, it cannot be reversed or amended. This applies to deposits, withdrawals, and settlement transactions. The irreversibility of on-chain transactions is one of the most important practical realities of using the platform.

The table below summarises the key risk factors specific to the ADI blockchain infrastructure:

Risk typeWhat it means in practiceWhat you should do
Permissioned networkGovernance changes by network operators may affect platform operationMonitor platform announcements for updates
Transaction finalityOn-chain transactions are irreversible once confirmedVerify all wallet addresses and network details before confirming
Network disruptionDowntime may delay deposits, withdrawals, or settlementCheck platform status page; contact support if delay exceeds expected timeframe
Smart contract riskCode errors or vulnerabilities may produce unintended outcomesReview platform announcements; the Company audits smart contracts but cannot guarantee all vulnerabilities are caught
On-chain data visibilityTransaction history may be visible to ADI network participantsBe aware that on-chain activity is not fully private within the network

The Betting Intermediary Model Explained

The platform is licensed and operates as a betting intermediary. This means the Company's role is to facilitate the creation and settlement of Event Contracts between users - it is not your counterparty. Your profits and losses come from your interaction with other users, not from a wager placed against the Company.

To participate in any Market, you first need to fund your account with one of the accepted cryptoassets. Once funded, your orders are matched against orders from other users in the order book. The Company earns revenue through fees on transactions, not by taking positions against you.

There is one exception: in specific Markets where the Company has disclosed in advance that it will act as counterparty, this is clearly identified in the relevant Market information. Outside of those disclosed Markets, the following applies:

  • The Company facilitates matching of user positions through the order book
  • The Company does not take positions in Markets or act as buyer or seller of last resort
  • Order execution depends on the presence of other users willing to take the opposite side
  • The Company does not guarantee that any order will be matched or executed
  • Revenue is generated through trading fees, settlement fees, and withdrawal fees - not through market positions

Holding Risk and Open Positions

If you hold an open position and do not close it before the Market resolves, the platform will settle that position by reference to the outcome of the Event. If the Event resolves against your position, you lose the full amount invested in that position. There is no automatic stop-loss and no partial recovery - this is the binary nature of Event Contracts.

Managing your open positions actively is your responsibility. Setting limits before you begin is straightforward - the responsible gambling tools let you define deposit and loss limits from your account settings, which can help you stay within a planned range of exposure.

Follow these steps to manage an open position before resolution:

  1. Log in and navigate to your account's open positions section
  2. Check the resolution date and time for each open Market
  3. Decide whether to close the position now or hold until resolution
  4. If closing, submit a close order through the order book at your chosen price
  5. Confirm the position is marked as closed in your account before the resolution time

Liquidity, Market Depth, and Exit Risk

Liquidity on any Market depends entirely on how many users are actively trading it. On high-volume Markets - major sporting events, widely followed political outcomes - the order book tends to have depth and spreads are typically narrower. On niche or less-traded Markets, the spread between the best buy and sell prices can be wide, and your ability to exit a position at your intended price may be limited.

There is no guarantee that you will be able to close an open position at any given time or price. The Company is not required to act as a buyer or seller to provide you with an exit. If you are ready to start trading, you can create an account and complete verification before placing your first order - understanding liquidity conditions in advance will help you choose Markets that suit your approach.

Liquidity conditions can also shift during high-volume Event periods. When a major tournament or election drives a surge in user activity, spreads and pricing dynamics may behave differently from normal conditions. The platform may also experience higher system load during these periods, which can affect order processing times.

Problems and How to Resolve Them

Most issues on the platform fall into a small number of categories: an order that was not executed, a settlement result that looks wrong, or a Market that was voided while you held a position. Each has a clear resolution path, and the market resolution process on Adi Predict Street is documented in the Trading Rules Policy published on the platform.

Your Order Was Not Executed

If you submitted an order and it was not matched, this is not an error - it reflects the absence of a counterparty willing to take the opposite position at your price. The platform does not guarantee execution for any order.

Check the following before contacting support:

  • Confirm the order is still open in your account's order book section, not cancelled
  • Review the current bid-ask spread to see if your price is within a realistic range
  • Check whether the Market has been suspended - during a suspension, no orders can be matched
  • Consider adjusting your price to be closer to the current market level
  • If the order has been open for an extended period with no match, cancel it and resubmit at a revised price

Settlement Result Looks Incorrect

The Company's determination of a Market outcome is final and binding except in the case of a manifest error. If you believe a manifest error has occurred, you should raise a formal complaint promptly - do not wait, as there are time limits on disputes.

To raise a settlement dispute, contact complaints@adipredictstreet.com and include the following:

  • Your account username or registered email address
  • The name and ID of the Market in question
  • The transaction or order ID for the affected position
  • A clear description of the issue and the outcome you received
  • The outcome you expected and the basis for that expectation
  • Any supporting evidence (screenshots, third-party data source references)

The Company will acknowledge your complaint within 3 business days of receipt and will use reasonable efforts to resolve it promptly. If the matter cannot be resolved within the initial period, you will be informed of the expected timeframe.

Market Was Voided After You Held a Position

If a Market is voided while you hold an open position, your stakes are returned to your account in accordance with the applicable Market rules. You will not receive any profit, but you will not lose your original position amount either.

To check the status of a voided Market and confirm your stakes have been returned:

  • Go to Account - Transaction History and filter by the relevant date range
  • Look for a return credit entry linked to the voided Market
  • If the credit does not appear within a reasonable period, contact complaints@adipredictstreet.com
  • Include the Market name, your position size, and the date you held the position

What to Send When Contacting Support

A well-prepared support request gets resolved faster. Whether the issue is a settlement dispute, a voided Market, or an order problem, the support team needs specific information to investigate. Generic descriptions without account or transaction details will slow the process down.

Always include the following when reaching out to complaints@adipredictstreet.com:

  • Your registered account email address or username
  • The name and unique ID of the Market or order involved
  • The relevant transaction or order ID from your account history
  • A concise description of what happened and what you expected to happen
  • Screenshots or references to external data sources if you are disputing a resolution outcome
  • The date and approximate time the issue occurred

FAQ

How does a prediction market work?

A prediction market lets users trade contracts linked to the outcomes of real-world Events. You acquire a contract at a price set by the market, and if the Event resolves in your favour, the contract settles in the money. If it resolves against you, the contract expires worthless. The price at any moment reflects the collective view of all users trading that Market, not an assessment by the platform operator.

What does binary outcome mean on Predict Street?

Binary outcome means each Event Contract has exactly two possible endings at resolution: it either pays out in full or it expires with no value. There is no partial settlement. If the Event resolves in your favour, you receive the settlement proceeds. If it resolves against your position, you lose the amount you invested in that position.

How are Event Contract prices determined?

Prices are set by the collective trading activity of users in the order book. When more users are willing to pay a higher price for a contract, the price rises. When sentiment shifts, prices fall. The Company does not set prices, does not endorse any price level, and does not make probability assessments about Event outcomes.

What is the ADI blockchain?

The ADI blockchain is a permissioned distributed ledger network on which the platform operates and settles transactions. Unlike public blockchains, access to the ADI network is governed by controls that are not determined solely by the Company. Transactions recorded on the ADI blockchain achieve finality and cannot be reversed once confirmed, which is why verifying wallet addresses before any transaction is essential.

Why does Predict Street use USDC for settlement?

USDC provides a relatively stable unit of account for settling Event Contracts while retaining the speed and finality of blockchain settlement. Understanding how Event Contracts settle in USDC matters because the peg to the US Dollar is not guaranteed at all times - risks include depegging, issuer insolvency, or regulatory action against Circle Internet Financial LLC. Any loss of USDC value from such events is borne by the user.

What is a Resolution Source on Predict Street?

A Resolution Source is the designated data provider, oracle, or official body that the Company uses to determine the outcome of an Event. Each Market has its Resolution Source specified in the Market rules before trading opens. The Company relies on these third-party sources and cannot guarantee their accuracy, timeliness, or continued availability.

Who determines the outcome of a market?

The Company determines the outcome of each Market by reference to the designated Resolution Source and in accordance with the applicable Market rules. That determination is final and binding on all users, except in the case of a manifest error. Users cannot dispute a settlement on the basis of disagreement with the outcome alone, provided the determination followed the published rules.

What happens if a market is voided?

If a Market is voided, the Company cancels settlement and returns stakes to users in accordance with the applicable Market rules. A Market may be voided if the Event is cancelled, the Resolution Source is unavailable or produces ambiguous results, manipulation is detected, or exceptional circumstances make fair settlement impracticable.

Are voided market stakes returned?

Yes. When a Market is voided, your original stake is returned to your account in line with the Market rules. You do not receive any profit, and you do not suffer a loss on the position amount. The return credit should appear in your account transaction history. If it does not appear within a reasonable period, contact complaints@adipredictstreet.com with the Market name and your position details.

Is there a guaranteed order execution on Predict Street?

No. The platform does not guarantee that any order will be matched or executed. Execution depends on the presence of other users willing to take the opposite position at your specified price. If no match is available, your order remains open in the order book until matched, cancelled, or expired. The Company is not required to act as buyer or seller of last resort.

What is holding risk on Predict Street?

Holding risk refers to the outcome of keeping an open position without closing it before Market resolution. If the Event resolves against your position, you lose the full amount invested in that contract - there is no partial recovery. You are responsible for actively managing your open positions. The platform does not apply automatic stop-losses.

Can I exit a position before market resolution?

You can attempt to close an open position before resolution by submitting a close order through the order book. However, there is no guarantee that a counterparty will be available at your desired price or at all. In Markets with low liquidity or during a suspension, exiting a position may not be possible. You should factor this into your decision before opening any position.

What is liquidity risk on Predict Street?

Liquidity risk is the possibility that you cannot open or close a position at your intended price because there are not enough counterparties in the order book. It is most pronounced in niche Markets with low trading activity, where bid-ask spreads can be wide. During high-volume Event periods, liquidity conditions may also shift in ways that differ from normal market behaviour.

What is the stablecoin risk with USDC settlement?

USDC is designed to maintain a value of one US Dollar, but this peg is not guaranteed. Risks include the potential depegging of USDC from the Dollar, insolvency or operational failure of the issuer Circle Internet Financial LLC, reserve management failures, or adverse regulatory action against the USDC product. The Company has no control over the issuer's operations, and any loss of USDC value arising from these events is borne entirely by the user.

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