PredMart Glossary

Plain-language definitions of the main terms you will see in PredMart.

E

Entry Fee

A one-time fee charged when you open a trade, calculated as 0.1% of your total position size. Goes to the pool. See Fees.

H

Holding Fee

A small ongoing fee that builds up while your trade is open. Deducted from your margin over time. See Fees.

L

Leverage

The multiplier that lets you control a bigger position than your cash alone. PredMart supports up to 5x leverage. If you put down $100 at 5x leverage, you control a $500 position. A 10% price move on that $500 means $50 gain or loss for you. Higher leverage means bigger wins and bigger losses. See How Positions Work.

Liquidation

If the price moves against you far enough, your trade is closed automatically and you lose your remaining margin. To avoid liquidation, use less leverage or close your trade before losses pile up. See Margin and Liquidation.

M

Maintenance Margin

The minimum value your position must hold to stay open: 15% of your total position size. If your position falls to this level, it can be liquidated. See Margin and Liquidation.

Margin

The money you put down to open a trade. This is the most you can lose. Minimum margin per trade is $1. See Margin and Liquidation.

Mark Price

The reference price PredMart uses for your profit/loss, margin health, and liquidation checks. See Oracle and Mark Price.

Market Cap

The per-market exposure limit: 10% of pool assets. Prevents any single market from putting too much of the pool at risk. See Providing Liquidity.

O

Operation Fee

A flat fee (capped at $0.01) charged each time you open, close, or adjust a trade. Covers transaction costs on Base.

Outcome

The thing you are trading on: Yes or No, a team, a candidate, or any other option in a prediction market.

P

Pool

The shared pot of money that takes the other side of every trade. When you back an outcome, the pool is on the opposite side. Liquidity providers (LPs) deposit USDC into this pool and collectively act as your counterparty. If traders win, the pool pays them; if traders lose, the pool keeps their margin. See Providing Liquidity.

Position Size (Notional)

Your total trade size in dollar terms. Calculated as Margin times Leverage. If you put down $100 margin at 5x leverage, your position size is $500.

Position Value

What your position is currently worth: your margin plus any unrealized profit or loss.

Profit Fee

A fee charged on your winnings when you close a profitable trade: 10% total, split 7% to LPs and 3% to the protocol. No fee if you lose money. See Fees.

R

Resolution

When a prediction market ends and the winning outcome is decided. PredMart automatically settles all open trades on that market. See Market Resolution.

S

Settlement

The automatic closing of trades when the underlying market resolves. You do not need to do anything; it happens automatically. See Market Resolution.

Slippage Tolerance

The maximum price change you accept between when you confirm a trade and when it actually executes: 5% by default. If the price moves too far, your trade will not go through.

U

USDC

A stablecoin pegged to the US dollar. PredMart uses USDC on Base for all margin, payouts, and pool funds — traders pay and get paid straight from their own wallet.

V

Vault Shares

Tokens you receive when you deposit USDC into the pool as an LP. They represent your share of the pool's total value. As the pool earns fees and wins or loses against traders, the value of your shares goes up or down. See Providing Liquidity.

Borrowing & Lending Terms

These terms apply to PredMart's borrow & lend product (see Borrowing and Lending) — not to leveraged trading, which uses margin instead.

Collateral

Polymarket shares you deposit to back a loan. They remain yours unless the position is liquidated.

LTV (Loan-to-Value)

How much you can borrow against collateral: 80% LTV means $100 of shares lets you borrow up to $80 in USDC.

Health Factor (borrowing)

Collateral value × the 85% liquidation threshold ÷ your debt. Below 1.0 the loan is liquidated. Distinct from a trading position's margin ratio.

Borrow APR

The utilization-based interest rate borrowers pay, accruing continuously onto the debt.

Supply APY

The yield lenders earn from borrowers' interest. It rises and falls with pool utilization.