Glossary

A

AA - Account Abstraction

Account Abstraction (AA) is a standard defined by ERC-4337 that allows smart contracts to act as wallets - replacing the traditional private key model.

PrediX uses Kernel v3 smart accounts with a passkey validator, meaning users sign transactions with biometrics (Face ID, Touch ID) instead of a seed phrase. Gas fees are covered automatically via a paymaster, so users never need to hold ETH to interact with the protocol.

Why it matters: AA removes the two biggest barriers to onboarding - managing private keys and buying ETH for gas. On PrediX, new users can start trading immediately after biometric setup.

AMM - Automated Market Maker

An AMM is a type of decentralized exchange that uses a mathematical formula to price assets automatically, rather than relying on a traditional order book of buyers and sellers.

On PrediX, the AMM layer is powered by Uniswap v4, which manages liquidity pools for YES-USDC and NO-USDC token pairs. When no matching limit order exists on the CLOB, trades are routed to the AMM.

Example: If you want to buy YES tokens at market price without waiting for a seller, the AMM fills your order instantly from the liquidity pool.

Arbitrage

Arbitrage is a trading strategy that exploits price discrepancies to generate a risk-free profit.

In prediction markets, a classic arbitrage opportunity arises when the sum of YES and NO prices exceeds $1. Since 1 YES + 1 NO always equals $1 USDC at settlement, a trader can:

Buy YES and NO separately at a combined price above $1
Merge them back into USDC via the Merge function
Pocket the difference

Example: YES = $0.60, NO = $0.55 → combined cost = $1.15 → merge → receive $1.00 → profit $0.15 per pair (before fees).

B

Badge

A Badge is a non-transferable NFT awarded to users who reach specific milestones on PrediX - such as hitting a trading volume threshold, maintaining a winning streak, or providing liquidity consistently.

Badges are displayed on your public profile and the leaderboard, serving as verifiable proof of your activity and performance history.

Bond

A Bond is collateral you stake to perform certain protocol actions that require accountability.

PrediX uses bonds in two contexts:

Oracle resolution (UMA): A reporter stakes a bond to propose the outcome of a market. If the outcome is disputed and proven incorrect, the bond is slashed.
Market creation (Phase 3): Creating a new market will require a bond to prevent spam and low-quality markets.

Bonds act as the protocol’s economic security layer - honest actors get their bond back; bad actors lose it.

Bridge

A Bridge transfers tokens between different blockchains. If you hold USDC or ETH on Ethereum mainnet and want to trade on PrediX (which runs on Unichain), you’ll need to bridge your assets first.

PrediX integrates three bridge providers:

Bridge	Notes
Across	Fast, optimistic bridge
Stargate	Omnichain liquidity protocol
LayerZero	Cross-chain messaging layer

Bundler

A Bundler is an off-chain service in the ERC-4337 system. It collects UserOps (pseudo-transactions from smart accounts), batches them together, and submits them to the blockchain as a single standard transaction.

PrediX uses the Pimlico bundler to process smart account actions reliably and efficiently.

C

CLOB - Central Limit Order Book

A CLOB is an on-chain order book where buyers and sellers post limit orders at specific prices, and trades execute when a matching order exists.

PrediX’s exchange (PrediXExchange) features a CLOB with 99 price ticks ranging from $0.01 to $0.99 in $0.01 increments. This gives traders precise control over their entry and exit prices.

Three matching types are supported:

Complementary: YES order matched with another YES order
Mint: Two BUY orders whose combined value reaches $1 → mints new YES + NO tokens
Merge: Two SELL orders whose combined value reaches $0 → merges and returns USDC

Cliff

A Cliff is a mandatory waiting period at the beginning of a vesting schedule during which no tokens are released. Only after the cliff period ends do tokens begin to vest.

PRX vesting cliffs by allocation:

Allocation	Cliff
Investors	6 months
Marketing & Partners	3 months
Team & Advisors	12 months
Treasury / DAO	6 months

Concentrated Liquidity

Concentrated liquidity is a feature of Uniswap v4 that allows LPs to provide liquidity within a specific price range, rather than spreading it evenly across all possible prices ($0.01–$0.99).

Benefit: Your capital is used more efficiently, generating higher fees when the market trades within your chosen range.

Risk: If the price moves outside your range, you stop earning fees and may experience higher impermanent loss.

Example: If you believe a YES token will trade between $0.40 and $0.70, you can concentrate your liquidity there and earn more fees than a full-range LP.

D

Diamond - EIP-2535

The Diamond pattern (EIP-2535) is a smart contract architecture that splits a single contract’s logic across multiple facets (sub-contracts), all accessed via one proxy address.

PrediX uses the Diamond pattern for two reasons:

To exceed Ethereum’s 24KB bytecode size limit on individual contracts
To allow individual modules to be upgraded independently without redeploying the entire protocol

All upgrades go through a 48-hour timelock to prevent unauthorized changes.

E

endTime

endTime is the on-chain timestamp at which a market closes for trading. After this point, no new orders can be placed or filled.

Once endTime is reached, the oracle resolution window opens - the designated oracle will report the real-world outcome and resolve the market.

EOA - Externally Owned Account

An EOA is a standard crypto wallet controlled by a private key - the type used by MetaMask, Ledger, and most traditional wallets.

EOAs contrast with Smart Accounts: they cannot batch transactions, cannot use paymasters natively, and require the user to manage seed phrases. PrediX supports both account types, but recommends smart accounts for the best user experience.

Note: EOA users can still benefit from PrediX’s gas sponsorship program via an off-chain rebate mechanism.

Event (Multi-Outcome)

A multi-outcome Event is a container that groups multiple related markets where exactly one outcome will resolve YES.

Example: “FIFA World Cup 2026 Winner” is an Event with 48 child markets - one per team. Only one team will win, so only one market resolves YES = $1; all others resolve NO = $0.

This structure lets traders take positions across competing outcomes within the same event.

F

Faucet

The Faucet is a testnet tool that dispenses free test tokens so developers and users can explore PrediX without using real assets.

Testnet faucet allocation (per wallet, per 24 hours):

0.0005 ETH
10,000 USDC (Vitural Funds)

G

Gauge Voting

Gauge voting is the mechanism by which vePRX holders direct LP subsidy rewards to specific prediction markets.

How it works:

Lock PRX → receive vePRX
Use vePRX to vote for markets you want to incentivize
Markets with more votes attract higher LP rewards
More rewards → deeper liquidity → better prices for traders

This creates a self-reinforcing cycle where popular, high-quality markets receive more liquidity.

H

Hook - Uniswap v4

A Hook is a smart contract that plugs into a Uniswap v4 liquidity pool and executes custom logic at specific points in the trade lifecycle (e.g., beforeSwap, beforeAddLiquidity).

PrediX’s custom Hook performs anti-sandwich identity verification - preventing MEV bots from inserting transactions around user trades to extract value.

I

Impermanent Loss (IL)

Impermanent Loss is the opportunity cost LPs experience when the price ratio of their deposited tokens changes compared to simply holding those tokens.

Example: You deposit USDC + YES tokens into an AMM pool. If YES price rises sharply, the AMM automatically rebalances your position - you end up with fewer YES tokens than if you had just held them. The “loss” is the difference between your LP position value and what you would have had by holding.

IL is called “impermanent” because it reverses if prices return to their original ratio. It is partially or fully offset by trading fees earned.

Integrity Bonds

Integrity Bonds are a cryptoeconomic security mechanism where users stake PRX as collateral to create markets or report oracle outcomes.

If the action is honest and correct → bond is returned
If the action is fraudulent or incorrect → bond is slashed (burned or redistributed)

This replaces centralized gatekeeping with economic accountability - anyone can participate, but bad actors pay a real cost.

Invariant

An Invariant is a hard-coded rule enforced on-chain at all times. If any transaction would violate an invariant, it is automatically reverted.

PrediX has 7 critical invariants (INV-1 through INV-7) that protect the integrity of markets, liquidity pools, and the settlement process. These cannot be overridden - not even by the admin team.

L

LP - Liquidity Provider

An LP supplies assets to an AMM pool, enabling traders to buy and sell without needing a counterparty. In exchange, LPs earn a share of all trading fees generated by that pool.

On PrediX, LPs deposit USDC paired with YES or NO tokens into Uniswap v4 pools. Upon providing liquidity, they receive an LP NFT representing their position.

LP NFT

An LP NFT is the token issued by Uniswap v4’s PositionManager when you provide liquidity. It represents your specific liquidity position - including the price range, token amounts, and accrued fees.

You can hold, transfer, or redeem your LP NFT to withdraw your liquidity and collected fees at any time.

M

Maker

A Maker is a trader who places a limit order on the CLOB - specifying the exact price at which they want to buy or sell. The order sits in the order book until a Taker fills it.

Makers provide liquidity to the order book and typically pay lower fees than Takers.

Market

A Market is the fundamental unit of trading on PrediX. Each market represents a single YES/NO question about a real-world event.

Every market has:

A question (e.g., “Will BTC exceed $100K by Dec 31, 2025?”)
A pair of outcome tokens (YES and NO)
An oracle to report the result
An endTime after which trading closes

Match Type (CLOB)

PrediX’s CLOB supports three order matching types:

Type	Mechanism
Complementary	Matches a YES order with another YES order on the opposite side
Mint	Two BUY orders combine to reach $1 → protocol mints new YES + NO tokens
Merge	Two SELL orders combine to reach $1 or less → protocol merges and returns USDC

Merge

Merge is the operation that burns 1 YES token + 1 NO token and returns 1 USDC. It is the reverse of Split.

Merge is fee-free and is commonly used for:

Arbitrage (when YES + NO > $1)
Exiting positions on both sides of a market simultaneously

Multisig

A Multisig (multi-signature) wallet requires approval from multiple parties before executing any transaction - preventing any single person from acting unilaterally.

PrediX operates three multisig configurations:

Admin: 2-of-3 signatures
Operator: 2-of-3 signatures
Oracle Reporter: 2-of-3 signatures

O

Oracle

An Oracle is the source that reports real-world event outcomes on-chain, allowing markets to settle correctly.

PrediX supports four oracle types:

Type	Description
Manual	Admin team reports the outcome directly
Chainlink	Automated data feeds for price-based markets
UMA	Permissionless oracle with a 48h dispute window
Committee	Multi-party committee vote

Outcome Token

An Outcome Token is an ERC-20 token representing one side of a prediction market - either YES or NO.

Settlement values:

Correct prediction → redeems for $1 USDC
Incorrect prediction → redeems for $0

Because outcome tokens are standard ERC-20s, they are composable with the broader DeFi ecosystem - they can be used as collateral, lent, or held in any compatible protocol.

P

Passkey

A Passkey is a WebAuthn authentication credential stored in your device’s Secure Enclave (the same chip that protects Face ID and Touch ID data). It replaces a traditional seed phrase for signing transactions.

On PrediX, passkeys are used as the validator for smart accounts. Your private key never leaves your device, and authentication happens via biometrics - no passwords, no seed phrases.

Paymaster (ERC-4337)

A Paymaster is a smart contract that pays gas fees on behalf of users, removing the need to hold ETH to interact with the blockchain.

PrediX runs a gas sponsorship program for eligible users (new accounts, stakers, campaign participants). Eligibility criteria are published before launch and may be updated via governance.

Smart account users: Paymaster covers gas directly
EOA users: Gas costs are refunded off-chain via rebate

Permit2

Permit2 is a Uniswap contract that allows users to sign a one-time ERC-20 approval off-chain, enabling all future token transfers to happen without additional on-chain approve transactions.

The PrediX Router uses Permit2 to enable gasless token approvals, simplifying the trading experience.

Points

Points are off-chain tracked rewards accumulated through activity on PrediX - including trading volume, prediction accuracy, LP contributions, and referrals.

Points are distributed as PRX on a weekly basis. They serve as a bridge between user activity and token rewards, allowing fair distribution without constant on-chain transactions.

Prediction Market

A Prediction Market is an exchange where participants trade tokens that represent the probability of a real-world event occurring.

The price of a YES token directly reflects the market’s collective estimate of the probability of that outcome.

Example: A YES token trading at $0.72 indicates the market believes there is a 72% probability the event will occur.

PrediX is a prediction market protocol built on Unichain, combining CLOB precision with AMM liquidity.

PRX

PRX is the native governance and revenue-sharing token of the PrediX protocol.

Total supply: 1,000,000,000 PRX (fixed, no additional minting)

PRX holders can:

Stake PRX → receive stkPRX + USDC yield from protocol fees
Lock PRX → receive vePRX for governance voting and LP reward boosting
Participate in governance → vote on protocol parameters, treasury decisions, and upgrades

Q

Quadratic Voting

Quadratic Voting is a governance mechanism where voting power equals the square root of the tokens staked - significantly reducing the influence of large token holders (whales).

Example: A user with 10,000 vePRX gets √10,000 = 100 votes, not 10,000.

PrediX introduces Quadratic Voting in Phase 2 of the protocol roadmap.

R

Real Yield (USDC)

Real Yield refers to revenue distributed to PRX stakers in USDC - sourced directly from actual protocol trading fees, not from token emissions or inflation.

This model ensures staker rewards are sustainable and backed by genuine protocol activity.

PrediX design principle: “PrediX earns first. PRX captures second. Holders compound third.”

Refund Mode

Refund Mode is an emergency state activated when the oracle fails to resolve a market within the required window.

In Refund Mode:

Trading is halted
Users can burn their YES + NO token pairs
USDC collateral is returned pro-rata to all participants

This mechanism ensures users can always recover their capital even if a market cannot be properly settled.

Reorg (Reorganization)

A Reorg (blockchain reorganization) occurs when competing versions of the blockchain temporarily exist, causing some recently confirmed transactions to be undone and replaced.

PrediX’s Ponder indexer automatically handles reorgs - detecting chain reversals and updating the protocol’s state accordingly without any user action required.

Router - PrediXRouter

The PrediXRouter is the main entry point for all trade execution on PrediX. It is a stateless aggregator that automatically finds the best execution path for every trade across both the CLOB and the AMM.

Key invariant: After every call, the Router’s own token balance must equal zero. It holds no user funds between transactions.

S

Sequencer

The Sequencer is an L2 component responsible for ordering and processing transactions on Unichain before they are finalized on Ethereum.

PrediX uses Chainlink to monitor sequencer uptime. If the sequencer goes offline, the oracle pauses market resolution to prevent unfair settlements during periods of network disruption.

SIWE (EIP-4361) is a standard that allows users to authenticate to web applications using their Ethereum wallet - similar to “Sign in with Google,” but decentralized.

On PrediX, users sign an off-chain message with their wallet. The backend verifies the signature and issues a session - no passwords or emails required.

Slippage

Slippage is the difference between the expected price of a trade and the actual price at which it executes, caused by market movement between the time you submit a trade and when it settles.

PrediX sets a default slippage tolerance of 0.5%. Users can adjust this in trade settings - tighter tolerance may cause trades to fail in volatile markets; wider tolerance allows more price movement.

Smart Account (ERC-4337)

A Smart Account is a contract-based wallet that supports advanced features not available to standard EOA wallets:

Batch transactions: Execute multiple actions in one transaction
Passkey signing: Authenticate with biometrics instead of a private key
Paymaster integration: Pay gas fees in USDC or have them sponsored

PrediX uses Kernel v3 smart accounts as the recommended wallet type for the best user experience.

Split

Split is the operation that deposits 1 USDC and mints 1 YES token + 1 NO token. It is the reverse of Merge.

Split is used for:

Market making: Creating YES and NO inventory to place orders on both sides
Arbitrage: When you want to hold both outcomes and later sell one at a profit

Stake

Staking means locking your PRX tokens into the PrediX vault in exchange for stkPRX (a non-transferable staking receipt) and a share of the protocol’s USDC fee revenue.

Staking is the primary way PRX holders capture value from the protocol’s growth.

Streak

A Streak tracks consecutive activity on PrediX - such as daily logins, winning predictions, or consistent LP activity.

Maintaining streaks earns Badges and bonus rewards, incentivizing regular engagement with the protocol.

stkPRX

stkPRX is a non-transferable token minted when you stake PRX. It represents your claim on the protocol’s USDC fee revenue and cannot be sold or transferred - it can only be redeemed by unstaking.

Supply Contraction

Supply Contraction is a deflationary mechanism built into PrediX’s token economy.

vePRX locks supply by taking PRX out of circulation. Buyback-and-burn uses protocol revenue to repurchase PRX from the open market and permanently destroy it, compressing the circulating supply over time.

This creates structural deflation - as the protocol grows, token supply decreases.

T

Taker

A Taker is a trader who fills an existing limit order on the CLOB - accepting the price set by a Maker. Takers execute trades immediately and typically pay slightly higher fees than Makers.

TBA - To Be Announced

TBA is a placeholder used when specific information (contract addresses, launch dates, parameter values) has not yet been officially published.

Tick (CLOB)

A Tick is a discrete price level in the PrediX order book. PrediX has 99 ticks ranging from $0.01 to $0.99 in increments of $0.01.

Each tick represents a possible price for YES or NO tokens. Traders place limit orders at specific ticks.

Timelock

A Timelock is a contract that introduces a mandatory 48-hour delay between when an admin action is proposed and when it can be executed.

On PrediX, all upgrades to the Diamond contracts and Uniswap v4 Hooks go through the timelock. This gives the community time to review any changes and respond before they take effect - preventing sudden rug pulls or unauthorized modifications.

TVL - Total Value Locked

TVL measures the total amount of USDC currently locked inside the PrediX protocol across all components:

Market collateral (USDC backing outstanding YES/NO tokens)
LP positions in AMM pools
PRX staking vault

TVL is a key metric for protocol health and adoption.

U

UMA Oracle

UMA is a permissionless oracle that allows anyone to report market outcomes without relying on a centralized team.

How it works:

A reporter proposes an outcome and posts a bond
A 48-hour dispute window opens - anyone can challenge the result
If disputed, UMA’s Data Verification Mechanism (DVM) mediates and decides
Honest reporters get their bond back; incorrect reporters lose it

PrediX introduces UMA oracle support in Phase 2.

Unichain

Unichain is an Ethereum Layer 2 (L2) blockchain built by Uniswap Labs, designed for high-performance DeFi applications.

PrediX is natively built on Unichain:

Testnet: Unichain Sepolia (Chain ID: 1301) - currently live
Mainnet: Unichain (Chain ID: 130) - launching after external audit completion

USDC

USDC (USD Coin) is a stablecoin pegged 1:1 to the US Dollar, with 6 decimal places.

USDC is the sole collateral currency on PrediX. All markets are denominated in USDC - you buy outcome tokens with USDC, and winning positions settle back to USDC.

UserOp - User Operation

A UserOp is the equivalent of a transaction for ERC-4337 smart accounts. Instead of sending a standard Ethereum transaction, smart account users create a UserOp that is submitted to a Bundler, which batches and processes it on-chain.

V

vePRX

vePRX (Vote-Escrowed PRX) is received when you lock PRX for a set period. It represents your governance weight within the protocol.

vePRX is used for:

Gauge voting - directing LP rewards to specific markets
Protocol governance - voting on parameter changes and upgrades
Yield boost - amplifying your rewards as an LP

Important: vePRX weight decays over time as your lock period approaches its end, incentivizing long-term alignment.

VRF - Verifiable Random Function

A VRF generates provably fair random numbers on-chain - the result can be verified by anyone but cannot be predicted or manipulated in advance.

PrediX uses Chainlink VRF to power reward boxes and any randomized reward distributions, ensuring fairness and transparency.

W

Webhook

A Webhook is an HTTP callback mechanism that pushes real-time event data to a URL you configure, without requiring constant polling.

On PrediX, bots and automated systems can listen to protocol events (new markets, settlements, price movements) via webhooks instead of continuously querying the blockchain.

Y

YES / NO

YES and NO are the two Outcome Tokens for every prediction market on PrediX.

Token	Resolves to	Conditions
YES	$1 USDC	The event occurs
YES	$0 USDC	The event does not occur
NO	$1 USDC	The event does not occur
NO	$0 USDC	The event occurs

The current trading price of a YES token represents the market’s implied probability of the event occurring.

Example: YES trading at $0.35 → market implies a 35% chance the event occurs.

Glossary

A

AA - Account Abstraction

AMM - Automated Market Maker

Arbitrage

B

Badge

Bond

Bridge

Bundler

C

CLOB - Central Limit Order Book

Cliff

Concentrated Liquidity

D

Diamond - EIP-2535

E

endTime

EOA - Externally Owned Account

Event (Multi-Outcome)

F

Faucet

G

Gauge Voting

H

Hook - Uniswap v4

I

Impermanent Loss (IL)

Integrity Bonds

Invariant

L

LP - Liquidity Provider

LP NFT

M

Maker

Market

Match Type (CLOB)

Merge

Multisig

O

Oracle

Outcome Token

P

Passkey

Paymaster (ERC-4337)

Permit2

Points

Prediction Market

PRX

Q

Quadratic Voting

R

Real Yield (USDC)

Refund Mode

Reorg (Reorganization)

Router - PrediXRouter

S

Sequencer

SIWE - Sign-In With Ethereum

Slippage

Smart Account (ERC-4337)

Split

Stake

Streak

stkPRX

Supply Contraction

T

Taker

TBA - To Be Announced

Tick (CLOB)

Timelock

TVL - Total Value Locked

U

UMA Oracle

Unichain

USDC

UserOp - User Operation

V

vePRX

VRF - Verifiable Random Function