> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usdc.premarket.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# Introduction

> PreMarket on ARC — on-chain prediction trading with AMM pools, creator liquidity, and community governance.

## What is PreMarket.trade?

**PreMarket.trade** is an on-chain prediction trading platform built on EVM-compatible networks. Users can trade market outcomes directly from their own wallets without depositing funds into a centralized account.

On the platform, each topic is split into two tradable sides:

* **YES**
* **NO**

Users can buy or sell positions based on their expectations of the final result.

<CardGroup cols={2}>
  <Card title="Fully On-Chain" icon="link">
    Trading, liquidity, settlement, and resolution run through smart contracts. Funds stay in your wallet until you trade.
  </Card>

  <Card title="AMM Pools" icon="chart-line">
    Trade directly against protocol liquidity — no need to wait for a counterparty on the other side.
  </Card>

  <Card title="Creator Markets" icon="user-pen">
    Anyone can launch a topic by providing initial liquidity and earn trading commissions.
  </Card>

  <Card title="Community Security" icon="shield-check">
    Disputed results can be challenged and settled through DAO voting with PMT staking.
  </Card>
</CardGroup>

***

## Core Features

### 1. Fully On-Chain Trading

All trading, liquidity, settlement, and result-related actions are executed through smart contracts.

* Users connect a Web3 wallet directly
* Funds remain on-chain
* Profits are paid directly to the user's wallet

### 2. No Opposite Counterparty Needed

PreMarket.trade uses an **AMM (Automated Market Maker)** model.

This means:

* Users do not need to wait for another trader to take the opposite side
* Trades are executed directly against liquidity pools
* YES and NO positions remain continuously tradable before the market closes

### 3. Topic Creator Liquidity Model

Each market is created by a **Topic Creator**, who provides the initial liquidity.

For each topic:

* A **YES pool** and a **NO pool** are created
* The creator provides real liquidity to one side
* The protocol creates mirrored virtual liquidity for the opposite side to ensure two-way trading

This makes new markets tradable immediately after creation.

### 4. Dynamic Market Pricing

Prices change automatically according to pool activity.

When users buy:

* USDC in the pool increases
* Available outcome tokens decrease
* Price rises

When users sell:

* USDC in the pool decreases
* Available outcome tokens increase
* Price falls

This creates a market-driven probability system.

***

## How Trading Works

### Buy Low, Sell High

Users can trade outcome tokens before the market closes.

Typical short-term strategy:

1. Buy YES or NO when the implied probability is low
2. Sell later if market sentiment moves in your favor

### Hold Until Settlement

Users can also hold tokens until the final result is confirmed.

After settlement:

* The losing side loses its pool value
* The winning side shares the combined pool proportionally

This creates a **winner-takes-all** payout structure.

***

## Resolution & Challenge System

<Steps>
  <Step title="Creator Resolution">
    After trading ends, the Topic Creator submits the market result within the resolution window.
  </Step>

  <Step title="Community Challenge">
    If traders believe the result is wrong, eligible participants can challenge during the challenge period.
  </Step>

  <Step title="DAO Voting">
    If a challenge succeeds or the creator fails to resolve in time, the market enters **community voting**.
  </Step>
</Steps>

This provides dispute resolution, creator accountability, and decentralized governance participation.

***

## Rewards & Incentives

<AccordionGroup>
  <Accordion title="For Traders">
    Users can potentially earn by:

    * Short-term trading
    * Holding the correct side until settlement
    * Participating in governance voting
  </Accordion>

  <Accordion title="For Topic Creators">
    Creators earn:

    * **0.5% trading commission** on market volume
    * Returned liquidity if they act honestly
  </Accordion>

  <Accordion title="For PMT Holders">
    Users who stake PMT can participate in governance and may receive voting rewards.
  </Accordion>
</AccordionGroup>

***

## Platform Structure

### Supported Assets

| Asset             | Role                            |
| ----------------- | ------------------------------- |
| **USDC**          | Trading and settlement currency |
| **USDC (native)** | Gas on ARC (e.g. Arc Testnet)   |
| **PMT**           | Governance and voting staking   |

### Smart Contract Roles

| Contract                          | Responsibility                       |
| --------------------------------- | ------------------------------------ |
| **TopicManager**                  | Topic creation and creator liquidity |
| **TradeManager**                  | Trading and market liquidity         |
| **Governance / Voting Contracts** | Challenge and DAO voting logic       |

***

## Why PreMarket.trade?

PreMarket.trade combines:

* On-chain prediction trading
* AMM-based liquidity
* Creator incentives
* Community dispute resolution
* DAO governance

It is designed to make prediction markets **transparent**, **permissionless**, **tradable**, and **community-secured**.

***

## Next Steps

<CardGroup cols={2}>
  <Card title="FAQ" icon="circle-question" href="/faq">
    Common questions about wallets, trading, settlement, and fees.
  </Card>

  <Card title="Rules & Terms" icon="scale-balanced" href="/rules-and-terms">
    Official platform rules, liquidity requirements, and risk disclosure.
  </Card>
</CardGroup>

<Note>
  This document is for product introduction purposes only. All actual execution, settlement, and fund movement are ultimately governed by the deployed smart contracts.
</Note>