## The Evaluation Framework
Not all prediction market platforms are created equal. Whether you're a new trader choosing your first platform or an experienced trader comparing options, this checklist helps you evaluate what matters.
## 1. Resolution Mechanism
**Questions to ask:** - How are markets resolved? (Oracle, human committee, house decision?) - What data sources are used? - Is there a dispute mechanism? - Can resolution criteria be changed after market creation?
**Best practice**: Decentralized oracle systems with multiple independent data sources and immutable resolution criteria.
## 2. Security and Custody
**Questions to ask:** - Where are my funds held? (Smart contract, company wallet, bank account?) - Can I withdraw at any time? - Is there an audit trail for transactions? - What happens if the platform shuts down?
**Best practice**: Smart contract-based custody on auditable blockchains. Self-custody wallet support.
## 3. Liquidity
**Questions to ask:** - Can I trade reasonable sizes without excessive slippage? - How many markets have active trading? - Is there automated market making? - What's the typical spread?
**Best practice**: LMSR or similar AMM for guaranteed liquidity, plus order book for tighter spreads on popular markets.
## 4. Market Coverage
**Questions to ask:** - What categories are available? - How many active markets? - Are markets created by the platform, users, or both? - How quickly are new markets added for emerging events?
**Best practice**: Broad coverage across categories (crypto, politics, sports, economics, science, entertainment) with rapid market creation.
## 5. Fees
**Questions to ask:** - Trading fees (per trade, spread-based, or both?) - Resolution fees? - Withdrawal fees? - Hidden fees? (Unfavorable pricing, wide spreads)
**Best practice**: Transparent fee schedule. On OraclBet: 0.5% spread + 2% resolution fee.
## 6. User Experience
**Questions to ask:** - How easy is it to sign up and deposit? - Is the interface intuitive? - Mobile-friendly? - How fast do trades execute?
**Best practice**: Email signup, multiple deposit options (crypto + card), responsive design, sub-second trade execution.
## 7. Transparency
**Questions to ask:** - Are trades and resolutions publicly verifiable? - Is the team identified? - Are smart contracts audited/published? - Is there a track record of fair resolution?
**Best practice**: On-chain transaction history, identified team, published contracts, public resolution evidence.
## 8. Regulatory Compliance
**Questions to ask:** - Is the platform licensed or pursuing licensing? - Are KYC/AML procedures in place? - What jurisdictions are served/excluded? - How does the platform classify its product?
**Best practice**: Active pursuit of relevant licensing (e.g., MiCA CASP), tiered KYC, clear legal positioning.
## The OraclBet Checklist
| Criteria | OraclBet | |----------|----------| | Resolution | Multi-source oracle (Chainlink + APIs) | | Custody | Smart contracts on Polygon | | Liquidity | LMSR + on-chain order book | | Markets | 4,600+ across 7 categories | | Fees | 0.5% spread + 2% resolution | | UX | Email signup, card deposits, dual trading mode | | Transparency | On-chain settlement, public oracle evidence | | Compliance | MiCA-aligned, KYC tiers, 18+ |
## Conclusion
Choosing a prediction market platform is a decision about trust, cost, and capability. Use this framework to evaluate platforms objectively and choose the one that best fits your trading needs and risk tolerance.