> For the complete documentation index, see [llms.txt](https://funmarket.gitbook.io/funmarket/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://funmarket.gitbook.io/funmarket/what-is-funmarket.md).
# What is FunMarket?
### What is FunMarket?
FunMarket is a non-custodial, on-chain prediction market protocol that allows users to create, trade, and resolve outcome-based markets using smart contracts.
FunMarket provides an interface to decentralized smart contracts deployed on the Solana blockchain. These smart contracts enable users to express views on future events by buying and selling outcome shares whose prices are determined algorithmically by market activity.
FunMarket does not act as a bookmaker, broker, exchange, or financial intermediary.
FunMarket does not set odds, guarantee outcomes, or take positions against users.
All interactions occur directly between the user’s wallet and the underlying smart contracts.
***
### What FunMarket Is Not
To avoid ambiguity, FunMarket is not:
* A betting or gambling platform
* A centralized exchange
* A custodian of user funds
* A financial advisor or investment service
* A party to any transaction between users
FunMarket does not accept deposits, hold balances, or control user assets at any point.
Users retain full custody of their funds and interact with the protocol at their own discretion and risk.
***
### Non-Custodial & Permissionless by Design
FunMarket is designed to be:
* Non-custodial
Users connect their own wallet and interact directly with smart contracts. FunMarket never has access to private keys or funds.
* Permissionless
Any user can create or participate in markets, subject to protocol rules and applicable restrictions.
* On-chain
Market creation, trading, and resolution are executed via smart contracts. Transactions are recorded on the blockchain and are irreversible once confirmed.
***
### How Prices Are Determined
FunMarket uses an automated pricing mechanism based on a bonding curve model (LMSR).
Prices are not fixed by FunMarket. Instead, they emerge dynamically based on:
* The amount of shares purchased or sold
* Market participation
* Liquidity conditions
As more users buy a specific outcome, its price increases. As users sell or buy alternative outcomes, prices adjust accordingly.
This mechanism enables continuous price discovery without relying on a traditional order book.
***
### Multi-Outcome Prediction Markets
Unlike binary prediction markets, FunMarket supports multi-outcome markets.
A single market may include multiple mutually exclusive outcomes. Each outcome has its own price, and all prices collectively reflect the market’s aggregated expectations.
This design allows for more nuanced predictions and reduces forced binary framing of real-world events.
***
### Resolution & Finality
Each market defines:
* A clear resolution condition
* A resolution source (oracle, data feed, or predefined criteria)
* A resolution date or event trigger
Once a market is resolved, outcome shares are settled according to the final result.
Resolution is final and irreversible.
FunMarket does not guarantee the accuracy, completeness, or availability of resolution sources.
***
### User Responsibility
By using FunMarket, users acknowledge that:
* They are solely responsible for their actions and decisions
* They understand the risks associated with blockchain-based protocols
* They may lose all funds committed to a market
* Smart contract interactions are irreversible
FunMarket provides tools and interfaces, not guarantees.
***
### Regulatory Positioning
FunMarket operates as a software interface to decentralized smart contracts.
FunMarket does not operate a gambling service, financial exchange, or betting operation. Users are responsible for ensuring that their participation complies with the laws and regulations applicable in their jurisdiction.
Certain jurisdictions may be restricted from accessing or using the platform.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter:
```
GET https://funmarket.gitbook.io/funmarket/what-is-funmarket.md?ask=
```
The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.