> ## 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. # Rules & Terms > Official PreMarket.trade platform rules — liquidity, trading, resolution, challenges, voting, settlement, fees, and risk disclosure. ## 1. Basic Definitions ### 1.1 Chain & Tokens The platform operates on supported EVM-compatible chains. For each deployment, the following apply: * **Trading Token**: USDC * **Gas Token**: Native chain gas token (e.g. USDC on ARC) Specific token contract addresses and supported networks are defined by the official deployment environment. *** ## 2. User Wallets & Assets ### 2.1 Wallet Connection Users interact with the platform by connecting their own Web3 wallets. ### 2.2 No Custodial Deposit The platform does not require users to deposit funds into a centralized account. ### 2.3 Asset Storage User positions and market interactions are executed and recorded through smart contracts on-chain. ### 2.4 Profit Distribution Any claimable or settled profit is distributed directly to the user's wallet. *** ## 3. Market Liquidity ### 3.1 Market Structure Each topic consists of two outcome pools: * **YES** * **NO** ### 3.2 Initial Liquidity A Topic Creator must provide the initial liquidity for each market. * Minimum initial liquidity: **100 USDC** * Liquidity is required to make the market tradable ### 3.3 Mirrored Liquidity Mechanism When liquidity is added to one side, the protocol may create a mirrored virtual liquidity structure on the opposite side to support two-way trading. *** ## 4. Creator Liquidity Withdrawal ### 4.1 Before Market Opens If the market has not yet opened for trading, the Topic Creator may delete the topic and withdraw liquidity in full. ### 4.2 After Final Resolution After final settlement: * If the creator acted honestly, liquidity is returned * If the creator is successfully challenged, part of the liquidity may be deducted as a penalty *** ## 5. Trading Mechanism ### 5.1 AMM Trading Users trade directly against the market liquidity pool through an **Automated Market Maker (AMM)**. ### 5.2 No Order Matching Required Users do not need a direct opposite counterparty to buy or sell. ### 5.3 Pricing Formula Pricing follows the protocol's pool formula and liquidity balance mechanics. In general: * Buying pushes the token price upward * Selling pushes the token price downward *** ## 6. Market Probability ### 6.1 Probability Representation Each market reflects an implied probability through the relative state of the YES and NO pools. ### 6.2 Probability Constraint At all times: * **YES Probability + NO Probability = 100%** ### 6.3 Initial State Before any user trading occurs, the market may begin at a neutral implied probability, such as **50% / 50%**. *** ## 7. Trading Deadline ### 7.1 Market Close After the market trading deadline is reached: * No further buy or sell trades are allowed * The market enters the resolution phase *** ## 8. Market Resolution ### 8.1 Creator Resolution Window The Topic Creator must submit the market result within the designated resolution period. ### 8.2 Resolution Delay If the creator does not resolve the market within the allowed time, the market may move into a fallback governance resolution process. *** ## 9. Challenge Mechanism ### 9.1 Challenge Eligibility If the creator's submitted result is disputed, eligible opposing-side participants may initiate a challenge. ### 9.2 Challenge Deposit A challenger must provide the required challenge stake in USDC. ### 9.3 Challenge Threshold If the total challenge amount reaches the required threshold, the challenge is considered successful and the market proceeds to community voting. ### 9.4 Failed Challenge If the challenge does not reach the required threshold within the challenge period: * The creator's submitted result remains valid * Challenge handling follows platform logic and contract execution rules *** ## 10. Creator Failure to Resolve If the Topic Creator fails to submit a result within the required time window: * The market may automatically enter community voting * The creator may be penalized * Part of creator liquidity may be deducted according to protocol rules *** ## 11. Community Voting ### 11.1 DAO-Based Resolution Disputed or unresolved markets may be settled through a **community voting mechanism**. ### 11.2 Voting Eligibility Only users meeting the governance staking requirements are eligible to vote. ### 11.3 Voting Weight Voting power is based on the amount of governance tokens staked. ### 11.4 Voting Duration Voting is conducted within the official platform-defined voting window. ### 11.5 Voting Outcome The final market result is determined according to the protocol's governance rules and vote outcome conditions. *** ## 12. Settlement Rules ### 12.1 Automatic Settlement Once the final result is confirmed, settlement is executed automatically by the smart contract. ### 12.2 Winner-Takes-All Pool Distribution At settlement: * The losing side loses its pool value * The winning side shares the total available market pool proportionally ### 12.3 Profit Variance Users on the same winning side may receive different net profits depending on: * Entry timing * Token purchase cost * Position size * Trade history *** ## 13. Topic Creator Rewards ### 13.1 Trading Commission Topic Creators receive a portion of trading-related fees generated by their market. ### 13.2 Real-Time Distribution Creator rewards may be distributed automatically as trading occurs. ### 13.3 Honest Participation Principle Creators who act honestly are expected to recover their liquidity, while dishonest behavior may lead to penalties. *** ## 14. User Profit Sources Users may potentially earn through: ### 14.1 Short-Term Trading Buying low and selling high before market close. ### 14.2 Final Settlement Holding the correct side until the final result is confirmed. ### 14.3 Governance Participation Participating in eligible community voting and receiving governance-related rewards. *** ## 15. Governance Token (PMT) ### 15.1 Token Role PMT is the governance token of the PreMarket ecosystem. ### 15.2 Governance Utility PMT may be used for: * Staking * Governance voting * Ecosystem participation * Reward-related mechanisms ### 15.3 Distribution Logic PMT distribution, airdrops, staking requirements, and reward ratios may be adjusted by platform governance. *** ## 16. Fees The platform may charge fees including but not limited to: * **Topic Creation Fee** * **Trading Fee** * **Governance / Treasury Allocation** * **Creator Commission Distribution** The exact fee values are defined by the current platform configuration and deployed contract logic. *** ## 17. Treasury & Reward Allocation Platform fees and penalty-based deductions may be distributed among: * Treasury * Creator incentives * Governance reward pools * Voter reward contracts Distribution is governed by smart contract logic and official platform parameters. *** ## 18. Risk Disclosure By using the platform, users acknowledge and accept the risks associated with blockchain-based prediction trading, including but not limited to: * Market risk * Liquidity risk * Smart contract risk * Wallet security risk * Network congestion or gas cost risk * Governance outcome risk Users participate at their own risk. *** ## 19. Final Interpretation ### 19.1 Contract Prevails This document is provided for user understanding and product transparency only. ### 19.2 Binding Logic All actual market behavior, settlement, fund movement, penalties, and rewards are ultimately governed by the deployed smart contracts. ### 19.3 Right to Update The platform may update product rules, fee structures, governance parameters, and operational details over time. *** **Disclaimer:** This document does not constitute financial, legal, or investment advice. Users should review the official contracts and platform announcements before participating.