Market creator: how to open a question

You formulate the question people will bet on: "who wins", "will the event happen by a date", "yes/no". Any account can create a market on VIZ — it is an ordinary signed pm_create_market operation, with no permissions and no moderation. Let's go through what you set and what you answer for.

The gist in two paragraphs

A market is a question + a set of outcomes + a liquidity curve that the price is computed along. You put up the initial liquidity (your own stake), set the market fee, choose an oracle (who announces the outcome) and a dispute mode (how the outcome can be challenged). Once created, the market lives on its own: people bet, the price floats, at the deadline the oracle announces the result, and the node computes the payouts automatically.

Your initial stake does not "burn" — direct market liquidity is principal-protected: it sets the depth of the curve, earns from fees and is returned to you in full at settlement (plus your accrued share of fees). You are not the counterparty to the bets and you do not risk principal on the outcome — that is what makes a VIZ market different from a "bookmaker" who can go into the red.

What you set at creation

Question and outcomes. The text of the question, the metadata (title, event, tags, image link). The market type: binary (two outcomes, CPMM curve) or multi-outcome (up to 64 outcomes, LMSR). A multi-outcome market is convenient when there are many outcomes (which of N wins); details — in the article on multi-outcome markets.

Initial liquidity. How much VIZ you put into the curve. The more, the "deeper" the market: bets move the price more smoothly, and large players can enter without sharp jumps. This is your principal-protected capital (see the article on the active LP).

Market fee. The percentage withheld from bets and paid to liquidity providers (you and other LPs) as income. Capped from above by a network median parameter.

Oracle. The account responsible for announcing the outcome. That can be you yourself or a trusted specialised oracle (for example, one mirroring Polymarket/Kalshi). The oracle carries an insurance bond and a reputation: it is penalised for an incorrect or missed resolution — see the article on the oracle.

Dispute mode and window. How the outcome can be challenged after it is announced: by a committee or by an account vote, and within what grace period. This protects bettors from an incorrect resolution.

Deadlines. betting_expiration — when bets stop being accepted; result_expiration — the deadline by which the oracle must announce the outcome. The allow_early_resolution option lets the oracle close the market earlier if the outcome is already known.

What happens after creation

• The market is open. People bet, fees accrue to you as an LP. You can add more liquidity or withdraw part of it (price-neutral, with no loss of principal).
• Betting closes. At betting_expiration bets stop being accepted.
• Resolution. The oracle announces the outcome. The node splits the pool: those who called it right are paid automatically, and your LP principal + share of fees are returned at settlement unconditionally.
• If there is no outcome. The oracle declares no-contest (event cancelled, source disappeared) → bets are refunded to the bettors, your liquidity comes back to you, and the oracle is not penalised. But if the oracle stayed silent until the deadline (result_expiration + grace), the market dies as missed-resolution: bets are still refunded, but the oracle is penalised (see "Oracle and resolution").

What a creator needs to understand

• You are not the bookmaker. Direct market liquidity does not cover the winnings out of your own pocket — the prize pool is formed by the losing bets. Your principal is protected.
• The oracle is a critical choice. Whether the market is resolved honestly depends on it. A bad oracle = disputes and penalties. Take a proven one, or be the oracle yourself and keep insurance above the risk-floor, otherwise your market will be hidden from the listings.
• The fee is a balance. A higher fee = more income for you, but a more expensive market for the players and less volume. A lower one is more attractive to bettors.
• Depth decides. Thin liquidity = sharp price jumps on every bet, which scares off large players. The initial stake sets the quality of the market.
• Metadata matters. A market with no on-chain title/tags is harder to find in clients and harder for automation to resolve.

Roles next to you

• Bettor — the one who bets on your outcomes.
• Oracle — announces the result; you choose it at creation.
• Active LP — can add depth to your market on top of your initial stake.

More on the topic: "Oracle and resolution" (who to choose and what they answer for), "Active LP" (the mechanics of liquidity and principal return), "Disputes" (dispute modes), "Multi-outcome markets" (when there are more than two outcomes).