Provide Liquidity to PredMart
The PredMart pool lets you be the house. When traders open bigger positions on prediction market outcomes, they trade against the pool. In exchange, you earn a share of all the fees traders pay.
How It Works
When you put USDC into the pool, you get pool shares. These shares represent your piece of the total pot. As traders pay fees, the pot grows, and your shares become worth more.
The pool takes the opposite side of every trade. When someone backs "Yes" on a market with up to 5x leverage, the pool is on the other side. If they win, the pool pays out. If they lose, the pool keeps their money.
Step by Step
- You deposit USDC - You get pool shares that track your ownership.
- Traders open positions - Their money (margin) is held inside the pool. The pool sets aside funds to pay them if they win.
- Fees flow in - Entry fees (0.1% of the position size), holding fees, and profit fees (10% on winning trades) go into the pool.
- Trades close - Winners get paid from the pool. Losers' money stays in the pool.
- You withdraw - Your shares are exchanged back for USDC at the current value.
Depositing USDC
- Go to the Vault page on predmart.com
- Approve USDC spending (first time only)
- Enter how much you want to deposit
- Confirm - your USDC moves into the pool, and you receive pool shares
Deposits happen instantly on Base.
What You Get
The shares you receive depend on the current pool value. Example: if the pool holds $100,000 total and you deposit $1,000, you own 1% of the pool. If fees push the pool to $110,000, your 1% is now worth $1,100.
How You Earn
Fee Income
| Fee Type | Rate | When Charged |
|---|---|---|
| Entry fee | 0.1% of position size | When a trade opens |
| Profit fee | 7% to LPs | When a winning trade closes |
| Holding fee | Builds up while the trade is open | When the trade closes |
When Traders Win or Lose
Beyond fees, your earnings depend on how traders do overall:
- Trader loses - Their money stays in the pool. Your share value goes up.
- Trader wins - The pool pays their winnings. Your share value goes down on that trade.
- Trader is liquidated - The pool keeps their forfeited margin, minus a 5% cut that goes to the PredMart protocol.
Over time, the house edge (all those fees) is designed to outweigh payouts to winners. But there is real risk here - in any stretch, traders can collectively win, and your balance will drop.
Your Balance Moves in Real Time
When a trade opens, the pool sets aside money for the potential payout. As market prices move, the trade's value changes, and so does the pool's value. Your share value updates in real time.
This is not a fixed-rate savings account. If traders are winning, your balance drops. If traders are losing, your balance rises. Over the long run, fees are expected to exceed payouts, but short-term drops happen.
Withdrawals
- Go to the Vault page
- Switch to the Withdraw tab
- Enter how much USDC you want back
- Confirm - your shares are exchanged for USDC
You can withdraw money that is not currently backing open trades. When many trades are open, some funds may be tied up until those trades close. This is temporary - your money is still in the pool, just reserved.
Per-Market Exposure Cap
The pool limits how much it can lose on any single market to 10% of the total pool. This means:
- No single market result can wipe out more than 10% of the pool
- Your risk is spread across many markets automatically
- One bad outcome cannot destroy the whole pool
If a market hits its cap, new trades on that market are blocked until exposure goes down.
Risks
Traders Might Win
If traders collectively make money, the pool pays out and your share value drops. This is the main risk of being the house.
What works in your favor: entry fees create income on every trade; profit fees capture a cut of winnings; holding fees add up over time; the per-market cap limits damage from any single market.
Smart Contract Risk
Bugs or security flaws in the code could lead to lost funds. See Security.
Withdrawal Delays
When many trades are open, not all your money may be available to withdraw immediately. This is temporary - your USDC is still in the pool, just backing active trades.
Your Funds
Your money stays in the smart contract. The PredMart team cannot take it, move it, or freeze it.
FAQ
Minimum deposit? No minimum. Just keep in mind that small deposits may not be worth the transaction fee on Base.
Lock-up period? None. Deposit and withdraw anytime, as long as funds are not backing open trades.
Do I need to claim fees? No. Fees are baked into your share value automatically.
Can I lose money? Yes. If traders win more than the fees bring in, your share value drops. The per-market cap limits how much any one market can hurt you, but overall losses are possible.
What do I get when I deposit? Pool shares - tokens you can trade or transfer that represent your piece of the pool. You can exchange them back for USDC at the current rate anytime.
Next Steps
- Fees - Full breakdown of fee structure
- Margin and Liquidation - How liquidation protects the pool
- Security - Delay mechanisms and admin controls
- Protocol Constants - All parameter values