🛍️ Trading Prediction Token

Prediction Tokens can be traded anywhere at ERC1155 supported platform. You can also trade at Predict.finance platform.

Due to the nature of Conditional Token, unless the event has happened, or destined to happen, value of a Prediction Token would always be less than the token worth. Combining the fact that each PT worths a fraction of a ETH (Currently 1 ETH could break down into 100 PTs, i.e. 0.01 ETH each), users need to deal with decimals all the time.

Predict.finance provides 3 ways to represent token value when it comes to trading: Odds, Unit Price, % u.p.

Odds

The most common way to represent the value of a bet. It works the same in traditional Sportsbooks.

Example 1: If the market predicts an event to have 10% chance of happening. The odds of the equivalent Prediction Token would be:

Unit Price

The unit worth of each Prediction Token. This is the "True value" of each Token, represented by its currency (WETH, USDT etc)

% u.p. (% of Unit Price)

This value would be self-explanatory, this percentage would also equals to the chance of the occurrence event, predicted by the market.

Example

Assume each PT could worth 0.01 WETH for successful occurrence.

If a PT is asking for 0.008 WETH, that EQUALS to:

$$Odds = \frac{MAX\_WORTH}{Unit\ Price} = \frac{0.01}{0.008} = 1.25 \textsf {x}$$

$$Unit\ Price = 0.008 \textsf {WETH}$$

$$\%\ u.p. = \frac{Unit\ Price}{MAX\_WORTH} * 100\%= \frac{0.008}{0.01} * 100\% = 80\%$$

Choose one of the representation that you found the most suitable.