1. Definitions
| Term | Definition |
|---|---|
| Platform | Eventa Markets — operated by an individual (non-profit oriented one-person project) |
| Share | Binary contract: pays 1 if outcome occurs, 0 otherwise |
| Market | Question with outcomes, resolution criteria, closing date |
| AMM | Automated Market Maker — deterministic pricing from quantities |
| LMSR | Logarithmic Market Scoring Rule — the AMM used |
| Liquidity (b) | Constant controlling market depth |
| Oracle | Designated source determining winning outcome |
| bps | 1 bps = 0.01% |
2. Legal & Operator
Prediction markets vs gambling: No counterparty house; prices from auditable formula (LMSR). Information-discovery role. Binary structure aligns with MiFID II / CFTC event contracts.
Regulatory: CFTC approves event contracts (Kalshi, CME); MiFID II may classify as financial instruments; IEM under no-action letter.
Operator: Individual operator. Does not set prices, take exposure, or act as counterparty.
3. Market Lifecycle
Before RESOLVED → may CANCELLED (full refund)
| State | Allowed Actions | Transition Conditions |
|---|---|---|
| Pending | Submit pre-orders; admin edits market | → Open when min_participants AND min_total_stake met, or admin activates |
| Open | Buy/sell shares; AMM active | → Closed when closesAt datetime reached |
| Closed | No new trades; await resolution | → Resolved when oracle/admin declares winning outcome |
| Resolved | Payouts distributed; read-only | Terminal state |
4. LMSR (Formulas)
C(q₁,…,qₙ) = b · ln( Σᵢ e^(qᵢ/b) )
pᵢ = e^(qᵢ/b) / Σⱼ e^(qⱼ/b)
Cost = C(q + Δq) − C(q)
Properties: bounded loss = b·ln(n); path independent; incentive compatible. Implemented in Rust (eventa-core) with decimal precision.
5. Fees & Payout
| Fee | Range | Application |
|---|---|---|
| Spread | 1–3% | Per market |
| Trading | 50–200 bps | Per trade |
| Settlement | 0–200 bps | On payout |
Net = shares × 1.0 − (shares × fee_bps / 10,000)
6. Resolution & Settlement
CLOSED → oracle declares winner → RESOLVED → payouts distributed.
| Scenario | Resolution |
|---|---|
| Event cancelled | Full refund at cost basis |
| Ambiguous | Committee review |
| Data unavailable | Cancel or fallback per rules |
7. Risk & Custody
Risk: Liquidity bounds loss; minimum participation and stake requirements where applicable; KYC tiers; rate limiting; admin oversight.
Custody (XRPL rail):Locked XRP remains on the XRP Ledger under conditional escrow until the market is resolved, cancelled per product rules, or released after the escrow's latest cancel time as described in §14. Pricing and settlement use deterministic, auditable rules. The operator does not stand as your counterparty in that on-ledger escrow flow. Other products or rails may have different custody characteristics only where explicitly offered.
8. Compliance
| Tier | Requirements | Limits |
|---|---|---|
| 0 | Browse only | |
| 1 | Gov ID | Standard |
| 2 | ID + address | Elevated |
| 3 | ID + address + source of funds | Max |
AML: transaction monitoring; withdrawal approval; IP geolocation; audit logging. See Privacy Policy.
9. Disputes
Contact support → committee review → confirm / overturn / cancel. Target: 7 business days.
10. Formula Reference
C(q) = b·ln(Σ e^(qᵢ/b)) pᵢ = e^(qᵢ/b)/Σe^(qⱼ/b) D = 1/p A = ±100p/(1−p) F = (1/p)−1 Net = shares × 1.0 − (shares × fee_bps/10000)
11. How to Fund & Trade (XRPL)
Eventa Markets' first production uses the XRP Ledger (XRPL) only. Settlement and non-custodial escrow use native XRP only. Connect your XRPL wallet via Reown WalletConnect; there is no EVM, Polygon, or cash in the initial rollout. Other on-ledger assets or pricing via verified pools may be considered in later phases.
Funding your XRPL wallet
- Use an XRPL-compatible wallet (e.g. Xumm, CROSSMARK) that supports WalletConnect.
- Obtain XRP via an exchange, DEX, or wallet-native swap. Send only to your own XRPL address (r...). You need a small XRP balance for transaction fees.
- Connect your wallet to Eventa via WalletConnect when placing a position; you sign EscrowCreate to lock funds. No deposit to a platform address — funds stay in XRPL escrow until the market resolves.
Important
- XRPL only. First production does not support Polygon, Ethereum, or other chains. Do not send EVM or other assets to an XRPL address.
- You control your keys. We never hold your wallet; you connect and sign with your own XRPL wallet.
- Double-check amounts and address before signing. Transactions cannot be reversed.
12. Payment & Settlement
Eventa Markets' first production uses the XRP Ledger (XRPL) only: native XRP for escrow and payouts. All user funds in this flow are non-custodial — locked in XRPL conditional escrow and signed via Reown WalletConnect. There is no EVM, Polygon, or cash in the initial rollout.
| Principle | Description |
|---|---|
| Non-custodial | Platform never holds user funds; all transactions are wallet-signed |
| XRPL only (v1) | First production: XRP Ledger with native XRP only for escrow; no EVM, no Polygon, no cash |
| Auditable | All settlements happen on-chain; XRPL ledger enforces transfers |
| WalletConnect | Reown WalletConnect — user signs with XRPL-compatible wallets |
| No fiat balances | No fiat stored; settlements are on-chain only |
Settlement (XRPL)
| Asset | Mechanism | Signing |
|---|---|---|
| XRP (native) | EscrowCreate / EscrowFinish | Reown WalletConnect (XRPL) |
Flow
- User connects XRPL wallet via Reown WalletConnect.
- User selects a market and amount in XRP.
- Backend calculates required amount and platform fee; constructs EscrowCreate.
- User signs EscrowCreate through WalletConnect; funds locked on XRPL.
- Oracle resolves market; backend verifies outcome.
- EscrowFinish releases winnings and platform fee; Payment to winners.
- User receives funds; platform fee to platform wallet.
Core Principle
The platform never touches funds until settlement. All locking and releasing is enforced by the XRPL ledger; users remain in control of their wallets.
Regulatory Note
Non-Custodial & Compliance
Using XRPL makes the flow compliant because users are in control: they sign EscrowCreate and the ledger holds the locked funds. The mechanism (conditional escrow) is provided by the XRP Ledger; the company charges a fee for using it. No e-money licensing for custody; platform facilitates escrow and market logic only. WalletConnect ensures users control signing and funds. No fiat balances stored; all settlements on-chain. The escrow coordination pattern aligns with the open-source xrpl-market-orchestrator.
13. Key Concepts Explained
Brief explanations of terms used across the platform.
What is Escrow?
Escrow means your funds are locked on the XRPL ledger until the market settles. The platform cannot move them — only the outcome (win/lose/cancel) triggers release. Your stake stays under your control via your wallet; you sign EscrowCreate and the ledger holds it until resolution.
What is WalletConnect?
Eventa uses Reown WalletConnect. You connect your XRPL-compatible wallet (e.g. Xumm, CROSSMARK) and sign transactions without giving the platform access to your funds. You approve each action — escrow lock — and your wallet talks directly to the XRP Ledger. The platform never sees your private keys.
What does "XRPL only" mean?
First production supports only the XRP Ledger for this rail, with native XRP for escrow and settlement. There is no Polygon, Ethereum, or other chain for this flow, and no cash deposits. Additional assets or integrations (for example verified AMM pricing) may be evaluated in later phases.
How does XRPL escrow (XRP) work?
You connect an XRPL wallet via WalletConnect and sign EscrowCreate to lock native XRP. Funds stay in XRPL escrow until the market resolves. The platform then submits EscrowFinish and pays winners with Payment in XRP. Custody is minimal and short-lived — only at settlement, driven by the Rust engine payout logic.
Why Non-Custodial?
Non-custodial means the platform never holds your funds in a central account. Escrows are on-chain; you sign to lock and release. This avoids e-money licensing, reduces counterparty risk, and keeps you in control. Fees are taken at settlement; no fiat balances are stored.
14. If Your Funds Seem Stuck (XRPL Escrow)
When you open a position, you sign an XRPL conditional escrow. That escrow includes a latest cancel timechosen when the lock is created (after the market's scheduled close, plus a short buffer). Until that time passes, the ledger will not treat the escrow as expired for cancel purposes.
After that time has passed, the XRP Ledger allows the escrow to be cancelled so that locked XRP returns to your wallet. Under XRPL rules, you do not have to wait only on the platformto submit that cancellation — you may use any XRPL-compatible wallet or tool that supports the appropriate transaction, subject to your wallet's UX. See the official reference: EscrowCancel (XRPL.org).
You can also inspect your address on a public XRP Ledger explorer to view escrow status and transaction history. If something still looks wrong, contact support with your wallet address and, if possible, the escrow or transaction identifiers shown in your wallet.
Not legal advice
This section describes general ledger behaviour for transparency. It is not legal or financial advice. If you are unsure how to use your wallet or an explorer, use your wallet vendor's documentation or support.
15. Cancelled Markets & Refunds (XRPL)
If a market is cancelled before it is resolved, the intent is that participants with locked XRP in XRPL escrow receive their funds back in line with the ledger and the product rules shown at the time you traded. Refunds are not a discretionary “balance transfer” from a pooled custodial account — they follow the on-ledger escrow rules.
If you believe a cancellation was applied but your wallet still shows locked XRP, use an explorer to confirm on-chain status and contact support. See also §14 — If Your Funds Seem Stuck.
16. How the Pieces Fit Together (High Level)
Eventa is designed so you can understand who holds funds and what decides prices and payouts, without publishing internal infrastructure details.
High-level data flow
You
Browser + XRPL wallet (WalletConnect)
Eventa
HTTPS app & API (markets, accounts, settlement coordination)
XRP Ledger
Escrow & payments enforced on-chain
Pricing & settlement math
Deterministic rules (including LMSR-style pricing) run in a dedicated Rust engine used by the platform — auditable logic, separate from your wallet keys.
- Keys: Your XRPL keys stay in your wallet; Eventa does not receive them when you use WalletConnect.
- Locked XRP: Held under XRPL escrow rules until resolution, cancellation, or a valid post-timeout cancel as described in §14.
- Outcomes:Winning outcomes are declared through the platform's resolution process (oracle / rules published on the market).
- Personal data: Categories and retention are described in the Privacy Policy.
17. Fairness, Engine & The House
Prices for trading are driven by an automated market maker (LMSR family) — the same public mathematical structure summarized in §4 and §10. The operator does not manually quote odds like a traditional bookmaker.
When markets resolve, payout rulesare applied consistently via the platform's settlement logic (backed by the engine). The platform charges disclosed fees (see §5); it does not take the opposite side of your trade as a house counterparty in the XRPL escrow flow described in §§11–13.
For on-ledger mechanics, see EscrowCreate, EscrowFinish, and Payment in §12; for concepts in plain language, §13.