> ## Documentation Index
> Fetch the complete documentation index at: https://prophet.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Introduction

> Prophet is the first autonomous, privacy-preserving prediction market on 0G Chain — where markets are resolved by AI, not committees, and liquidity never sleeps.

## What is Prophet?

> **Prophet is the first prediction market where positions are sealed until resolution, markets are resolved by an AI oracle — not a human committee — and liquidity is provided by an autonomous agent, 24/7.**

Prophet is a **YES/NO share prediction market protocol** built on **0G Chain** (EVM-compatible, chain ID 16602). Every market trades exactly two assets — YES shares and NO shares — priced between $0.00 and $1.00 by a protocol-owned on-chain AMM. When a market resolves, the winning share redeems for $1.00 USDT and the losing share for $0.00.

No human committee decides outcomes. No centralized backend runs the oracle. No human LPs are required to seed liquidity. Prophet uses **0G Labs infrastructure** — 0G Chain, 0G Compute, and 0G Storage — to make the entire system autonomous and verifiable.

***

## Who Is Prophet For?

<CardGroup cols={2}>
  <Card title="Traders" icon="arrow-trend-up" href="/docs/user-guide/trading">
    Buy and sell YES/NO shares on any open market. Your position direction stays sealed until the market resolves — no front-running, no information leakage.
  </Card>

  <Card title="Market Creators" icon="plus-circle" href="/docs/user-guide/create-market">
    Anyone can permissionlessly create a market on any binary, verifiable question. The AI oracle validates your question at creation time and resolves it at deadline.
  </Card>

  <Card title="Developers" icon="code" href="/docs/developer/local-setup">
    Fork the contracts, extend the oracle, build integrations. Full Foundry test suite (232 tests), TypeScript agents, Next.js frontend — all open source.
  </Card>

  <Card title="Researchers" icon="microscope" href="/docs/architecture/0g-integration">
    Study how decentralized AI inference, permanent on-chain storage, and autonomous market-making combine to create a fully trustless prediction market.
  </Card>
</CardGroup>

***

## Why Prediction Markets Matter

Prediction markets are one of the most powerful tools humanity has invented for aggregating information. When people bet real money on outcomes, prices reflect the crowd's honest, skin-in-the-game assessment of probability. This outperforms expert forecasting, surveys, and polls — consistently.

A YES share trading at \$0.65 is not an opinion. It is the market's statement: **there is a 65% probability this event occurs.** That signal is valuable for decision-making in finance, governance, science, and policy.

The problem is that existing prediction markets are broken in ways that limit their accuracy and adoption.

***

## Why Existing Markets Fail

**Polymarket** — the current market leader — has two fundamental problems:

1. **Public positions**: Every bet is visible on-chain the moment it is placed. Sophisticated traders see large positions form and front-run them, discouraging early, informed participation.
2. **Human committee resolution**: UMA's optimistic oracle relies on a human dispute process. It is slow, gameable, and introduces political risk into supposedly objective questions.

**Augur** tried to solve resolution with token-weighted voting, but that requires a liquid governance token, is vulnerable to plutocratic capture, and adds weeks of delay after market close.

Neither protocol has solved the cold-start liquidity problem: without market makers willing to seed both sides, new markets have no liquidity, so no traders come, so no liquidity accumulates.

***

## Why Prophet Is Different

Prophet attacks all three problems simultaneously using 0G infrastructure:

| Problem                             | Prophet's Solution                                                                 |
| ----------------------------------- | ---------------------------------------------------------------------------------- |
| Front-running from public positions | NaCl-encrypted commitments stored in PositionVault — direction sealed until reveal |
| Human committee resolution          | AI oracle on 0G Compute — deterministic, verifiable, no governance token           |
| Cold-start liquidity                | Protocol-owned LiquidityPool + autonomous market-maker agent                       |
| Oracle accountability               | Full reasoning chain written permanently to 0G Storage Log layer                   |
| Permissioned market creation        | ProphetFactory is open to any caller — no whitelist                                |

***

## The Five Core Guarantees

<AccordionGroup>
  <Accordion title="1. Continuous Liquidity" icon="droplet">
    The LiquidityPool contract holds protocol-owned USDT. The autonomous market-maker agent allocates a portion to each new market, seeding YES and NO reserves so the AMM is immediately tradable. No human LP is required. The agent runs 24/7 and rebalances continuously.
  </Accordion>

  <Accordion title="2. Autonomous Resolution" icon="robot">
    When a market's deadline passes, anyone can call `triggerResolution`. The oracle agent picks up the event, calls **0G Compute** (DeepSeek V3 / Qwen 2.5 7B on testnet) with a structured reasoning prompt, and posts the verdict on-chain. No human vote. No governance process.
  </Accordion>

  <Accordion title="3. Permanent Evidence" icon="database">
    Every oracle reasoning chain — the model's full chain-of-thought, evidence summary, sources checked, confidence score — is uploaded to **0G Storage** before the verdict is posted on-chain. The root hash is stored in the contract. Anyone can retrieve and verify the reasoning independently.
  </Accordion>

  <Accordion title="4. Privacy-Preserving" icon="lock">
    Bets are encrypted before submission using NaCl box encryption (ECDH + XSalsa20-Poly1305). PositionVault stores only the commitment hash. Direction and amount are revealed in a single atomic reveal transaction after resolution — simultaneously for all participants.
  </Accordion>

  <Accordion title="5. Permissionless Creation" icon="globe">
    ProphetFactory accepts market creation from any Ethereum address. The AI oracle validates the question at creation time — rejecting ambiguous or unresolvable questions — but there is no whitelist, no application process, and no human gatekeeper.
  </Accordion>
</AccordionGroup>

***

## Built on 0G Labs

Prophet is a deep integration project, not a surface-level deployment. It uses three distinct 0G modules:

* **0G Chain** (chain ID 16602) — all smart contracts, all transactions, all on-chain state
* **0G Compute** — decentralized AI inference for question validation, oracle resolution, and market pricing
* **0G Storage** — permanent decentralized storage for oracle reasoning, market metadata, and agent state

<Info>
  This is not just "deployed on 0G Chain." The oracle only exists because 0G Compute provides decentralized AI inference. The audit trail only exists because 0G Storage provides permanent, tamper-proof data. Remove either module and the product stops working.
</Info>

***

## Core Links

<CardGroup cols={2}>
  <Card title="Trade Markets" icon="arrow-trend-up" href="/docs/user-guide/trading">
    Start trading YES/NO shares on the Prophet app
  </Card>

  <Card title="0G Integration Depth" icon="layer-group" href="/docs/architecture/0g-integration">
    Technical audit of all 0G module integrations
  </Card>

  <Card title="AMM Design" icon="calculator" href="/docs/concepts/amm">
    How the binary YES/NO AMM works mathematically
  </Card>

  <Card title="Oracle Resolution" icon="cpu" href="/docs/concepts/resolution">
    How AI resolves markets via 0G Compute
  </Card>
</CardGroup>