> For the complete documentation index, see [llms.txt](https://custos-org.gitbook.io/custos/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://custos-org.gitbook.io/custos/rollocker/interactive-blocks/understanding-market.md).

# Understanding Market

## <sub>Market Category</sub>

The current prediction market type focuses on crypto price.&#x20;

Custos will introduce a broader range of market categories. Have fun :)

## <sub>Markets</sub>

A TSR can have one or more markets. In each market, users can use <mark style="color:blue;">**quote asset**</mark> to predict the price of <mark style="color:blue;">**base asset**</mark>.

Markets are tied to users assets, providing holders with tools for risk management and yield enhancement. The main markets are:

* BTC
* ETH
* Asset itself

> *For example:*
>
> *DOGE TSR may have prediction markets such as DOGE/DOGE, BTC/DOGE, and ETH/DOGE. The term before the "/" represents the base asset, and the term after "/" represents the quote asset.*

## <sub>Predicting without Rollocker</sub>&#x20;

A market that allows betting using a token with a rollock as the quote asset is referred to as Market with Rollocker.&#x20;

In contrast, a market that allows a quote asset to bet without rollocker is called Market without Rollocker. When participating in such markets, users cannot rollock the quote token, so there are no staking rewards after the prediction ends.

## <sub>How are Price Predictions Resolved?</sub>

Once Cooldown Period ends, the settlement process would triggers data fetching, rule comparison, and result execution.

* Predictions are resolved by Chainlink, the leading smart-contract based oracle. If the asset price is not supported by Chainlink, the <mark style="color:blue;">**TWAP price**</mark> will be sourced from a DEX with sufficient liquidity for that asset.
* As the initial markets involve price predictions with clear rules and outcomes, there is no challenge period.
* The way to resolve the prediction and distribute earnings stick to pre-defined rules, which can be found on the market page.
* When each round of prediction ends, winners receive prediction earnings based on held positions. Orders from this round become invalid.

## <sub>How are Markets Created</sub>

Users cannot directly create prediction markets. All markets are listed by the market team following thorough evaluation. However, we strongly encourage all users to actively propose for new markets.

The best approach to give your proposal is to visit

[Custos.Discord](https://discord.gg/ShsbA6J9uU) in the #market-proposal channel

and submit a Market Proposal Form. Please provide as much detailed information as possible so the team can assess your proposal. The market team will carefully review all proposals.


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