How It Works

1. Market Anatomy

   • Outcome schema & bounds; unified collateral pool; aggregate market state visual. (Use this page to define your “PDM” object model.)

2. Mathematical Primitive: Bernstein PDFs

   • Why Bernstein polynomials (validity checks become trivial on-chain).

3. Market Lifecycle

   • Create (permissionless, single tx; five core parameters).

   • Price & Trade (cost function embeds divergence/timeliness).

   • Redeem / Manage Position (active, fair value; not locked).

   • Resolve (bonded assertion → challenge → escalation → Schelling convergence).

4. Payoff-by-Intent (Inverse Design)

   • Build from the payoff profile a user wants; client maps intent → belief vector (SDK).

Trading

1) Create a Market
Define the question, bounds, unit, and resolution window. A single transaction deploys the unified pool.

2) Aggregate & Quote
The protocol maintains an aggregate PDF (consensus). A quoting function maps “belief vs. consensus” into a price using a divergence metric.

3) Trade a Belief
Users submit a belief vector (internally: Bernstein coefficients). The protocol validates shape constraints and mints a claim tied to the pool.

4) Manage Exposure
At any time, traders can redeem (partially or fully). The same divergence law sets fair value in and out.

5) Resolve
When the outcome is known, verifiers post a bonded assertion. Challenges escalate until the market converges. Payouts are computed by the same generating potential that priced trades.