How MEZONK works

How a market works

1. A reviewed market is published into seeding with a yes/no question, exact rules, a source, a close time and a launch policy.
2. Seeders commit funded orders. Their MUSD is locked in the contract. The market goes live only when the contract sees enough depth on both sides, a narrow spread and enough separate seeders. If that doesn't happen by the deadline, every seeder takes their deposit back.
3. You buy or sell Yes and No shares against other people's orders, at 1¢ to 99¢ per share. MEZONK never takes the other side of a trade.
4. After close, the outcome is proposed by the market's resolver, with evidence. Anyone can challenge it during the challenge window.
5. Once final, winning shares redeem for 1 MUSD each. No deadline to claim.

MUSD

MUSD is Mezo's Bitcoin-backed stablecoin. You mint it by borrowing against BTC on Mezo. MEZONK accepts only the official MUSD contract for Mezo Testnet: 0x1189…c503. The address is fixed in the contract and never looked up by token symbol.

On testnet: get BTC for gas from the Mezo faucet, then borrow MUSD. Mezo requires a minimum MUSD debt of 1,800 plus a 200 MUSD gas deposit. Testnet MUSD has no cash value.

Prices, orders and payouts

Every Yes/No pair is backed by exactly 1 MUSD held by the exchange contract. Shares only come into existence when someone locks that MUSD: by splitting 1 MUSD into 1 Yes + 1 No, or when a Yes buyer at 60¢ and a No buyer at 40¢ are matched, together paying exactly 1 MUSD for a new pair. Because of that, every winning share is paid from money already in the contract. Nobody, including MEZONK, pays winners out of pocket.

• Market order: fills now against the best offers, never past your price limit. Whatever can't fill at that price is cancelled.
• Limit order: fills what it can now, and the rest waits on the book at your price. You choose to sign it (free, funds stay in your wallet) or escrow it on-chain (funds locked, always executable).
• If everyone wants Yes and nobody offers it, nothing fills. The ticket says so; you can raise your limit or wait. No shares are invented.
• Prices: the only price shown as a price is the last real trade. The middle of the book is labelled indicative. A market with no trades shows no number.

What a share pays

• Your side wins: 1 MUSD per share.
• Your side loses: 0.
• The market is ruled Invalid: 0.5 MUSD per share of either side.

Example: you buy 100 Yes at 40¢. You pay 40 MUSD plus the taker fee. If Yes wins, they pay 100 MUSD. If No wins, they pay nothing. If Invalid, 50 MUSD.

Resolution and disputes

1. Trading closes at the time set at creation. Closing doesn't decide anything.
2. The market's resolver proposes Yes, No or Invalid within the proposal window. The proposal includes a hash of a published evidence document and posts a bond.
3. During the challenge window, anyone except the resolver can challenge by posting a bond with their own evidence. One challenge per proposal.
4. If nobody challenges, anyone can finalize the proposal once the window ends.
5. If challenged, the market's arbitrator rules, with a published rationale, before its deadline. The losing side's bond goes to the winner.
6. If the resolver never proposes, or the arbitrator never rules, anyone can finalize the market as Invalid, and bonds are refunded. Funds never get stuck.

Every step is a public transaction, and every market page shows the full evidence trail with each document checked against the hash committed on-chain. The arbitrator is today a single address and is the main point of trust. See the resolution design.

Fees and parameters

These are the live values for markets created now. Each market keeps the values it was created with.

The market contract is not deployed on this network yet. Trading is off.

Claiming payouts, refunds and bonds is free apart from the network fee.

Suggesting and publishing a market

• Anyone with a wallet can suggest a market: a question with a number or date, and rules a stranger would apply the same way.
• A curator reviews it against the market policy and a public checklist. Every decision and reason is visible on the suggestion's page.
• Approval is a signature from the curator's wallet. The contract refuses to create a market without a valid, unused, unexpired one, and the curator can never be the publisher.
• An approved creator publishes it. That starts seeding; it does not make the market tradable, and the creator doesn't have to put up money.
• Anyone can seed. A seed order is a real offer: once the market is live it can fill, and the seeder then holds that side and can lose it. Seeders share part of the taker fees for a while after launch, paid only from fees actually collected and capped per wallet. It is not interest and not guaranteed.
• Referrers earn part of the fees paid by people they bring, from those people's real trades only, capped per market.
• Once published, rules are hashed on-chain and can never be edited, so ambiguity hurts everyone.

Suggest a market · See the review queue

Market policy

• Not allowed: markets on violence, death or harm to people; markets about private individuals; markets that could reward illegal acts.
• Must be resolvable: questions without a public, checkable source should not be created. Ambiguous markets should resolve Invalid.
• Deficient rules: markets without MEZONK's structured rules are flagged. Policy is that the resolver proposes Invalid unless the text decides it unambiguously.
• Insider information and manipulation: don't trade on non-public information you have a duty to protect, and don't create markets on outcomes you control.
• Access: you are responsible for whether prediction markets are legal where you live.

The contract is permissionless, so this policy is enforced in this app (creation checks, flags) and through resolution, not by the contract itself.

Risks

• You can lose everything you put into a position. Prices are estimates, not guarantees.
• Outcomes depend on the resolver, challengers and the arbitrator acting honestly and on time.
• The contracts are not audited. Bugs could lose funds.
• MUSD is a stablecoin with its own risks. Mezo is a young network.
• Thin books fill only partly: the ticket shows how much fills at your price before you confirm. Seeding and liquidity provision can lose money.
• Nothing on MEZONK is financial advice.

Contracts and trust

Network

Mezo Testnet (chain 31611)

Market contract

Not deployed

Collateral

0x1189…c503

• No upgrade mechanism. The code you can read is the code that runs.
• The owner can approve resolvers, change parameters for future markets, pause new markets and trading, and withdraw the protocol's fee share. The owner cannot move your MUSD, change outcomes, or block claims.
• Pausing never stops resolution, claims or bond withdrawals.
• The website reads balances and claimable amounts straight from the contract, so you can still exit if MEZONK's servers are down.
• Source: github.com/prajalsharma/mezonk. System status.

Public data API

Other Mezo apps can read indexed MEZONK data. All responses are JSON; amounts are 18-decimal strings; errors use { error: { code, message } }.

• GET /api/markets?status=open&sort=trending&q=&category=&limit=&offset=
• GET /api/markets/:id · /history · /activity
• GET /api/resolution/:id
• GET /api/portfolio/:address · /api/activity/:address
• GET /api/health · /api/indexer/status

Trending score: 24h volume × √(1 + distinct traders in 24h), open markets with at least one trade in 24h. Indexed data is a copy; verify anything financial against the contract.