Validate a Market
Market Validation
Validating a market is what completes the full cycle of the HILOmarket ecosystem. It ensures high-quality outcomes, zero manipulation, and full transparency through a decentralized process.
Proposal
The process begins with a proposal. Any user can propose a resolution at any time by locking HILO tokens and selecting the outcome they strongly believe is correct — based on facts, public data, or real-world events.
If the market settles according to their proposed result, the proposer receives a guaranteed reward.
Challenge Window
After a proposal is submitted, a challenge window opens. During this time, any user can challenge the proposal if they believe it’s incorrect or premature. Challengers also lock HILO tokens, and if the market does not settle with the original proposal, the challenger is rewarded.
Users cannot act as a proposer and challenger at the same time, or as a challenger and voter in the same round.
Voting Stage
If a challenge occurs, the market moves into the voting stage. Users can vote for Option 1, Option 2, or Postpone by locking HILO tokens. Voters receive guaranteed rewards if they vote in alignment with the final outcome.
Outcome & Settlement
After the voting timer ends, the option with the most votes becomes the new proposed result. The cycle can repeat: if someone challenges this new proposal, the process starts again — with double the cost for each new round.
If no one challenges, the market settles, and everyone who voted correctly or proposed the right outcome receives their rewards. If the result is Postpone, the process resets, and a new proposal is required.
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