Understanding how Kash’s automated market mechanics work helps you make better predictions and maximize returns.
Hero Light

How Market Creation Works

AI agents create all markets through a comprehensive validation process. While users can suggest markets, the actual creation involves rigorous AI evaluation and quality control.
Automated Market Detection5 Specialized AI Personas continuously monitor social signals:
  • Crypto-Degen Agent: Token listings, ETF approvals, DeFi milestones
  • Sports Agent: Match outcomes, player performance, championships
  • Tech Agent: Product launches, AI breakthroughs, earnings results
  • Macro Agent: Interest rate decisions, economic indicators, elections
  • Pop-Culture Agent: Award shows, album drops, celebrity drama
Creation Process:
  1. Signal Detection - AI identifies trending topics with prediction potential
  2. Quality Assessment - Validates verifiable outcomes and clear criteria
  3. Market Generation - Creates binary YES/NO markets with resolution parameters
  4. Instant Deployment - Markets go live with automatic liquidity bootstrap

Core Market Structure

Pricing and Liquidity

Probability-Based PricingMarket prices directly reflect outcome probabilities:
  • YES at $0.70 = 70% implied probability
  • NO at $0.30 = 30% implied probability
  • Always sums to $1.00 for complete market
  • Prices adjust with each trade based on supply and demand
Price Movement Drivers:
  • Buying Pressure: Increases price of purchased outcome
  • Selling Pressure: Decreases price of sold outcome
  • Trade Size: Larger trades create bigger price impacts
  • Market Depth: More liquidity reduces price volatility

Complete Market Lifecycle

1

Market Creation & Validation

AI-Driven Process with Quality Control
  • AI agents detect trending topics or process user suggestions
  • Validation phase: Mira Network ensures verifiable outcomes and clear criteria
  • Content safety: AI checks prevent prohibited topics
  • Market parameters set: Question, resolution criteria, trusted sources, 30-day maximum deadline
  • Instant Liquidity Bootstrap: Passive LP Vault automatically deploys USDC
2

Active Trading Period

Open Price Discovery
  • Continuous trading available 24/7
  • Prices fluctuate based on new information and trader activity
  • Market consensus develops through collective prediction
  • Real-time odds visible in X conversations and web interface
  • Maximum duration: 30 days before automatic closure
3

Market Closure

Trading Freeze
  • Trading halts at predetermined closure time
  • All positions locked at final prices
  • No new predictions accepted after closure
  • Preparation for automated resolution begins
4

Automated Resolution

AI-Powered Settlement with Cryptographic Proofs
  • zkTLS Verification: Reclaim Protocol fetches data with cryptographic proof of authenticity
  • AI Analysis: EZKL zero-knowledge ML proves correct YES/NO determination
  • Combined Proof: zk-SNARK submitted to resolution contract on Base blockchain
  • Instant Settlement: Winners automatically receive $1.00 per winning share
  • Platform fee: 2% charged on all predictions

Fee Structure and Economics

Advanced Features

Flexible Trading OptionsBuying and Selling:
  • Purchase YES or NO shares at current market price
  • Exit positions before market resolution
  • Sell into automated liquidity pool
  • Lock in profits or limit losses
Portfolio Tracking:
  • Real-time position values and P&L
  • Historical performance analytics
  • Export capabilities for tax reporting

Resolution and Settlement

Understanding these market mechanics gives you an edge in prediction trading. The combination of AI validation, automated liquidity, and cryptographic resolution creates the most advanced prediction market system available.