Chapter 02 · Market creation

Start a market with the first bet

Write a question, fix how it will be answered, and place the first stake. Other people can join without anyone funding an opening price.

A question becomes a market when someone backs it

You think an event will happen. Someone else thinks it will not. QuantMMO lets you turn that disagreement into a market by writing a question and placing the first bet, which can be as small as ten cents.

Choose YES or NO and state exactly what would make each answer correct. Name the sources that will establish the answer and what happens if the question cannot be resolved. A closing time is optional. Without one, the market stays open until someone sends it to resolution, and anyone can do that at any time. Sending stops new stakes and new tokens. Existing tokens keep trading until the final answer. These terms become fixed when the first stake is accepted. A later trader or the creator cannot rewrite them.

Your first stake is money backing your position. It is not a separate listing charge. The market can start with one person, but it cannot create a gain from money nobody else has contributed.

The early market is a shared pot

At first, bets go into a shared pot called a parimutuel pool. That means the winning side divides the money available at settlement. The amount each bettor receives depends on their share of the winning claims and on how much money ultimately joins both sides.

If YES has $60 and NO has $40, the displayed YES share is 60%. This describes the money committed so far. It is neither a guaranteed probability nor a fixed payout quote. Another bet can change the ratio.

A market maker is someone who commits money or tokens to standing trading prices. The opening pool does not need one. Bettors supply the pot themselves, so nobody has to finance a buy and sell quote before the question has attracted an audience.

Participants still take the risk of being wrong or poorly informed. A small pool can move sharply when someone adds money. If nobody backs the other side, there is no opposing stake to win. The market's published cancellation rules cover a question that never attracts the backing needed for resolution.

Born with a dime
The market is born empty. Total cost to create it: whatever you bet first. Try a dime.
YES
NO
Pot
$0.00
YES share of backing
…
YES backing
…
NO backing
…
Resolution funding
Crowd-funded at request

No court-fee estimate or reserve is collected while betting. When review becomes eligible, anyone can chip in toward the exact fee under the market's fixed repayment rule.

Early conviction earns a larger share

An early bettor commits before much information or money has arrived. The default design gives that deposit extra claim weight, the number used to divide that side's eventual claims. The bonus falls evenly from 8% at creation to zero after 30 days. Each deposit keeps the bonus available when it was made.

The displayed pool ratio uses actual deposits. Claim weight is kept separately so a bonus cannot pretend to be new backing. If the market later creates wallet tokens, the allocation uses those recorded weights.

Agree on a price before the crowd changes it

Someone who wants a fixed agreement can post a standing offer from the start. They choose the side, price, maximum size and expiry, then reserve the money needed to honour it. Another person can accept all or part of that funded offer.

When a normal bet can receive a better price from a funded offer, the planned routing checks those offers first. Any amount that goes into the changing pool is shown separately from the amount accepted at a fixed price. A partial fill commits only the matched money. Unfilled money can be released when the offer expires or its cancellation rules permit.

Fixed agreements do not earn the early pool bonus. Their claims and backing are recorded separately so later pool bets cannot dilute the agreed allocation.

One market's whole life, clickable
A question is posted with a dime on YES. This scaled demonstration uses the same two-sided backing, executable-depth, and 24-hour rules as the token conversion checks.
Funded buy and sell offers: YES at 70¢ and NO at 30¢$140 of immediately fillable depth remains on each side. Every quote was locked for 48 hours when posted
YES
YES tokenA standard wallet token you can hold, lend or trade
NO tokenThe same wallet functions for the NO outcome
Order book opensThe unfilled slice of the standing offer just became its first resting order.
YES offer or pool share
…
Variable pool
$0.10
Your fixed stakes matched
$0
✗ Backing ≥ $50 on each side
✗ Funded offers ≥ $20 on each side
✗ 0 / 24 continuous hours

Scaled values keep this demonstration quick. Fund both sides, add funded quotes in both directions, then advance the full 24-hour window. If backing or either quote falls below its threshold before then, the clock resets.

Small markets can settle without becoming tokens

A pool does not need to become a wallet token to reach a final answer. Its recorded claims can settle directly. Token conversion adds transfer and trading options only after the market passes the liquidity checks explained in the next chapter.

Court funding is separate from the pot. Once a request is eligible, contributors advance the exact quoted fee. A final YES or NO reimburses the successful request's initial fee from the pot, then deducts the locked QuantMMO fee and pays the winning claims. A completed case with insufficient information leaves the backing untouched and follows the market's retry or cancellation rules.

The production QuantMMO fee has not been set. A real market must disclose and fix its rate before accepting its first stake. The settlement example shows how those deductions work without treating an illustrative rate as a launch decision.