> For the complete documentation index, see [llms.txt](https://docs.0y.world/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.0y.world/markets/what-is-0ys-lmsr/simple-pmm.md).

# Simple PMM

### PMM Phase 1 — Simple PMM Pool Markets

Phase 1 is the simplest possible prediction market: a shared pool, two sides, one outcome. Think of it like a shared pot at the table — everyone throws their chips in, the oracle calls the result, and the winning side splits everything (minus platform fees).

**Available assets:** BTC, ETH, SOL, XRP, BNB, GOLD, SILVER, OIL (more coming soon)

**Timeframe:** 1-min\*, 5-mins, 15-mins

**Early exit:** Not available — you hold until close

*\*during phase 1, 1 min markets is not available yet.*

***

#### How a 1-Minute Market Works — Step by Step

**Step 1 — Market Opens** A new market is created automatically every minute for each asset. The oracle records the opening price (e.g. BTC at $67,423.10).

**Step 2 — Staking Window (0–50 seconds)** You and other users stake UP or DOWN. Every $1 you stake goes into the pool. You can see the live pool totals — e.g. "UP: $45 | DOWN: $28" — and an estimated multiplier that updates every 5 seconds.

**Step 3 — Final 10 Seconds (LOCKED)** No new stake accepted. The displayed multiplier is essentially final. You can see the countdown.

**Step 4 — Market Closes & Settles** The oracle checks the BTC price again. If it's higher than the open price → UP wins. If lower → DOWN wins. The pool distributes.

**Step 5 — Payouts** Winners receive: their stake × final multiplier (credited instantly to their account balance).

***

#### The Payout Formula

```
Prize Pool  = (UP pool + DOWN pool) × (1 - fees rate)
Multiplier  = Prize Pool ÷ Winning Side Pool
Your Payout = Your Stake × Multiplier
```

***

#### Understanding Your Multiplier

**Phase 1 — Estimated Multiplier**

In 1-minute markets, your multiplier is **estimated** during the open window and **final** at T-10 seconds.

**Why estimated?** Because new stakes keep changing the pool ratio right up to the lock. If 5 more people stake UP in the last 20 seconds, the UP pool grows and the UP multiplier shrinks.

**What you'll see:**

| Stage                       | Display                                             |
| --------------------------- | --------------------------------------------------- |
| Market open, balanced pools | `~1.84x est.`                                       |
| One side heavily favoured   | `~1.12x est.` (favourite) / `~8.3x est.` (underdog) |
| T-10s locked                | `Final: 1.84x`                                      |
| One side has zero stake     | `--- Waiting for both sides`                        |

**The variable multiplier is a feature.** The suspense of watching your multiplier lock at T-10 seconds is intentional. You're in a live market. Odds move because other humans are trading against you right now.


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