Axiom Theorem

A decentralized prediction market built on XRP rails

Market Lifecycle

Axiom Theorem combines CLOB trading with stake-weighted market resolution. A market can be created, traded, resolved, and redeemed without relying on a centralized bookmaker or governance token.

1

Creation

Only top 50% Axiom Prime stakers may create markets after bootstrap mode, specifying:

• Title, outcomes, trading window, resolution timing, and settlement asset.

• Metadata and evidence sources for clear resolution.

• The logical market structure that the frontend will render.

For CLOB markets, one user-facing market may map to one or more binary AxiomCTFMarket contracts under the hood.

2

Trading (CLOB)

Axiom now uses a Central Limit Order Book backed by Conditional Tokens.

At a high level:

• AxiomConditionalTokens represents outcome positions as ERC-1155 tokens.

• AxiomCTFMarket prepares and resolves each market condition.

• AxiomCTFExchange settles matched trades onchain.

• An offchain matching engine handles order ingestion, price-time priority matching, and book state.

What users do

Users interact with markets through an order book instead of a shared prize pool.

They can:

• place limit orders that rest on the book

• take existing liquidity for immediate execution

• mint complete sets of outcome tokens and sell the side they do not want

• hold winning tokens through resolution and redeem them afterward

Core CLOB concepts

Term	Meaning
Bid	Highest price a buyer is willing to pay
Ask	Lowest price a seller is willing to accept
Spread	Difference between best bid and best ask
Depth	Available size at each price level
Maker	Resting order that adds liquidity
Taker	Incoming order that removes liquidity

Orders follow price-time priority:

1. Better prices match first.

2. If prices are equal, older orders match first.

Why Axiom uses CLOB markets

Benefit	Description
Tradable positions	Users can enter and exit before resolution by buying and selling tokens on the book
Professional market structure	Price-time priority, visible depth, and signed orders support real market making
Onchain settlement	Final fills settle through AxiomCTFExchange, not a trusted offchain ledger
Composable inventory	Users can mint complete sets, trade single outcomes, merge positions, and redeem after resolution
Clear incentives	Makers, takers, and referrals can all be rewarded through Axiom Points
Logical market flexibility	One user-facing market can map to multiple binary market contracts while keeping one clean UI

Asset flow

For binary markets, users can always reason about positions as YES and NO tokens.

• Buying YES means paying collateral and receiving YES tokens.

• Selling YES means delivering YES tokens and receiving collateral.

• Holding one share of every outcome forms a complete set that is redeemable for full collateral value.

Settlement fees

CLOB markets charge protocol fees on settled trades, not on redemption.

Default live fee split:

• 0.50% to the dev treasury

• 0.25% to the staker fee recipient

• 0.25% to the incentives recipient

This is a 1.00% total trade fee on settled CLOB trades.

What users see

Instead of pool ratios or time bonuses, users see market microstructure:

• best bid and ask

• order book depth

• last trade price

• price chart built from actual fills

• open orders and fill history

• positions by outcome

Markets can still be binary or multi-outcome, but the trading interface is now order-book based rather than prize-pool based.

3

Proposal (Optimistic Resolution)

The first top 50% staker to submit an outcome proposal becomes the official proposal. They provide evidence URIs and the proposal immediately enters a challenge window (default: 6 hours, governance-adjustable).

• If no challenge is submitted during this window, the proposal is automatically accepted and the market finalizes.

• The proposer receives a fixed consensus bonus (default: $10 USD equivalent, governance-adjustable).

• Any top 50% staker may submit a challenge during the window with an alternative outcome, triggering a governance vote.

4

Challenge & Voting (if triggered)

When a challenge is submitted:

• All top 50% stakers vote between the original proposal and the challenger.

• Vote weight is proportional to staked value.

• Voting window is 24 hours by default.

5

Escalation (if needed)

If the top 50% vote fails to reach consensus because quorum or supermajority is not met, the market escalates to all Axiom Prime stakers.

• The same quorum and threshold logic applies.

• An automatic 24-hour extension can trigger if quorum is not reached.

• If escalation still fails, the market resolves as invalid and unresolved positions are refunded via the redemption path.

6

Settlement and Redemption

Once the outcome is finalized:

• AxiomCTFMarket reports payouts to Conditional Tokens.

• Winning positions become redeemable for collateral.

• Users redeem through the market-scoped redemption path or directly through Conditional Tokens.

• CLOB trade fees have already been charged during execution, so redemption itself does not apply another payout fee.

Governance rewards and penalties still apply at resolution:

• incorrect proposers and voters lose stake

• correct participants receive the redistributed penalty pool

• unchallenged proposers receive the fixed proposer bonus