# FAQ ### **What is Axiom?** Axiom is a prediction market where users trade on future events using XRP or stablecoins like RLUSD. It is built for the speculation culture of the XRP community and expands into global, crypto, sports, and economic markets. *** ### **Does Axiom have a token?** No. Axiom does not have a native token.\ You use the assets you already hold, starting with XRP. *** ### **How do markets work?** Axiom uses a CLOB backed by Conditional Tokens: * Users trade outcome tokens through an order book. * Makers add liquidity by placing resting orders. * Takers remove liquidity by crossing the spread. * Matched trades settle onchain through `AxiomCTFExchange`. * After resolution, winning tokens are redeemed for collateral. This gives Axiom tradable positions, visible depth, and onchain settlement without relying on a centralized bookmaker. *** ### **What can I bet on?** Axiom supports: * XRP and Ripple ecosystem predictions * Crypto market outcomes * Global events * Sports * Technology and macroeconomics * Social and narrative driven events These markets reflect what XRP holders and global traders already talk about. *** ### **How are outcomes determined?** Axiom uses decentralized, stake-weighted governance: 1. A top 50 percent staker proposes an outcome 2. Others can challenge it 3. If challenged, top 50 percent stakers vote 4. If still unresolved, all stakers vote 5. If nothing passes, the market resolves as invalid and unresolved positions can be redeemed accordingly Incorrect actors lose stake. Correct actors gain stake. *** ### **Why can the first proposal pass automatically?** This is called optimistic resolution.\ If no one challenges the proposal during the challenge window, it is accepted automatically. This allows uncontested markets to resolve in hours rather than days. *** ### **What happens if people vote incorrectly on purpose?** They lose part of their staked value. Penalties are enforced through share burns: * Incorrect proposers lose 0.20 percent of their stake * Incorrect voters lose 0.10 percent These penalties are redistributed to honest participants. *** ### **What is Axiom Prime?** Axiom Prime is the staking and yield layer.\ Stakers: * Earn yield from market commissions and penalties * Receive non-transferable share tokens * Gain governance power * Become eligible to create markets and resolve outcomes The same capital that earns yield also protects truth. *** ### **What is the top 50%?** Every 24 hours, Axiom snapshots all stakers and sorts them by USD value.\ The top 50 percent of stakers are eligible to: * Create markets * Propose outcomes * Challenge proposals * Vote in the first voting round This prevents small wallets from spamming governance. *** ### **Why is Axiom launching in bootstrap mode?** At launch there are: * No stakers * No top 50% * No governance participants Bootstrap mode solves this by allowing a whitelisted council to: * Create early markets * Resolve outcomes * Seed activity * Stabilize the protocol Bootstrap mode ends when: * Three signers vote to disable it * Or 12 months pass *** ### **How do I earn yield?** During the Bootstrap phase, you can earn incentives through the Axiom Points program. Current live CLOB points rules: * Points come from settled CLOB fills. * Makers earn `1.5x` points. * Takers earn `1.0x` points. * Referrers earn `10%` of a referee's base trading points. * Base rate is `$1` of executed USD notional = `100` points. Post-bootstrap, stakers earn yield from protocol fees and governance penalties. *** ### **Can I lose money by staking?** Yes.\ Only if you propose or vote incorrectly, penalties apply. These penalties are small but real and are designed to ensure honest participation. If you do not participate in governance, you do not risk any penalties, but you do still earn yield from market commissions. *** ### **When will stablecoin markets be supported?** Stablecoins like RLUSD, USDC, or USDT will be supported once sufficient liquidity is available on the XRPL EVM Sidechain. Governance can then enable stablecoin settlement and new vaults. *** ### **Can anyone create markets?** After bootstrap mode ends, yes.\ Any top 50% staker can create markets. During bootstrap mode, only whitelisted signers can create markets. *** ### **Can I exit a position before resolution?** Yes, if there is liquidity on the order book. Because Axiom uses tradable Conditional Tokens positions, users can: * sell a position they already hold * buy an outcome before resolution * post resting orders and wait for fills Final redemption still happens only after the market is resolved. *** ### **Which network does Axiom run on?** The XRPL EVM Sidechain.\ This provides: * XRP liquidity * Low fees * Fast execution * Smart contract functionality * A smooth user experience Although, users do not need to understand bridging or network details and can deposit XRP from the XRPL mainnet or any CEX. *** ### **What is the recommended way for AI agents to use Axiom?** Axiom CLI is the recommended interface for AI agents. It provides a more consistent workflow for agent automation and can expose richer reads than raw contract interaction alone, including market discovery, metadata, outcome labels, profile views, rewards state, unclaimed winnings, and funding instructions. *** ### **Can users or agents interact with Axiom directly through smart contracts?** Yes. Axiom is a decentralized protocol deployed on the XRPL EVM Sidechain, so anyone can interact directly with supported permissionless contract functions. The CLI is recommended because it is more consistent and ergonomic, not because it has exclusive access. Privileged or administrative actions are still restricted by contract permissions. *** ### **Is Axiom legal in my country?** Regulations differ across regions. Axiom is a decentralized protocol and does not provide legal advice. Users are responsible for understanding local laws and restrictions. *** ### **Can businesses or institutions use Axiom?** Yes. Institutions can use Axiom to: * Hedge political or economic risks * Forecast macro outcomes * Track market sentiment * Evaluate adoption trends * Inform internal planning Axiom can serve as a decentralized forecasting layer. *** ### **What happens if a market becomes unclear or disputed?** If proposals and votes fail to reach consensus, the market resolves as invalid. This protects users from ambiguous or unresolvable events. *** ### **Can Axiom be shut down?** Axiom is a set of smart contracts deployed on the XRPL EVM Sidechain.\ Once bootstrap mode ends, no entity can unilaterally change or disable the protocol. Governance is fully stake based and decentralized. This also means access is not dependent on a single interface. The app and Axiom CLI may be the easiest ways to use Axiom, but users can still interact with the protocol directly onchain. --- # Agent Instructions: 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://docs.axiomprotocol.io/whitepaper/faq.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.