🏟️ Creating Template Markets
How to Create Valid, Liquid, and Popular Markets
Augur is equipped with pre-defined templates which make the process of creating valid markets easier for market creators. Templates have rigid parameters which don't allow the market creator to deviate from a structure that is highly likely to produce a valid outcome. They simplify the creation of new markets by reducing the number of decisions and possible errors users can make.
Templates cover the most popular markets across different market categories. Each template is carefully structured so users have to choose or enter the variable aspect of their market. For example, a popular sports market template is: Which team will win: [Team Name A] vs [Team Name B]. In this template the user only needs to enter the two team names and doesn’t need to worry about how the wording of the market should be structured.
The process of creating a template market is relatively straightforward. First, select the Create Market tab on the upper right:
Choose Template Category & Sub-Category
In the section marked, "Use a market template," Select between templated markets for Crypto, Entertainment, Finance, Politics, or Sports.
Don't see your category? Market templates are currently only available for the categories shown. If you want to create a market with a different category, you will need to create a custom market in the “Start from scratch” section.
Choose Market Type
Select one of Augur's three market types, YES/NO, Multiple Choice, or Scalar.
Choose Template
There are unique templates for each market type within each sub-category. Browse the templates to find the appropriate one for your use.
Read through invalid rules
Ensure your market does not violate any of the rules laid out in the guidelines
A market is invalid if:
The market question, resolution details or its outcomes are ambiguous, subjective or unknown.
The result of the event was known at market creation time.
The outcome was not known at event expiration time.
It can resolve without at least one of the outcomes listed being the winner, unless it is explicitly stated how the market will otherwise resolve in the resolution details.
The title, details and outcomes are in direct conflict with each other.
The market can resolve with more than one winning outcome.
Any of the outcomes don’t answer the market question ONLY. (outcomes cannot introduce a secondary question)
If using a resolution source (a source is a noun that reports on or decides the result of a market), the source's URL or full name is NOT in the Market Question, regardless of it being in the resolution details.
If using a resolution source, it is not referenced consistently between the Market Question and Resolution Details e.g. as either a URL or its full name.
Player or team is not in the correct league, division or conference, at the time the market was created, the market should resolve as invalid.
Augur Markets:
Should resolve using general knowledge if the market does not have a resolution source in market question.
Cover events that occur between market start time and end time in the market question. If start time is not specificed in the market quetion, market creation date/time is used. If no end time is specified in market question, the event expiration is to be used. If the event occurs outside of these bounds, the market should resolve as invalid
Outcomes must be unique from one and other within a market. If multiple outcomes share a common name, they must be easily distinguishable (ie. Serena Williams and Venus Williams)
Configure Market Details
Question: For template markets, the typical action required for the market question will be to choose between a list of potential options
Example: NBA: Total number of wins the [Team] will finish the [Year Range] regular season with?
Be sure to double-check that you are selecting the right inputs as incompatible or incorrect inputs will likely resolve as Invalid
Outcomes: For Multiple Choice or Scalar markets, you'll need to manually input the potential outcomes.
Some templates add additional, required outcomes that are automatically included in your market. Note, for categorical markets, the required outcomes count towards the maximum sum of 8.
Scalar Markets have unique properties and require inputting a unit of measurement, numeric range, and precision. The Numeric Range spans from the minimum to maximum price at which traders can buy or sell shares and determines how the end payout for long and short shares is calculated. The Precision is the smallest increment in which traders can price shares.
For example, consider a market on the number of inches of rainfall in Chicago in April. If the Denomination is inches, the range is 0 to 3, and the precision is set to 1, then traders can buy or sell shares at 0, 1, 2, or 3. If the precision is set to .1, traders can buy or sell shares at 0, .1, .2 … 9.8, 9.9, 10.
Unlike other types of markets, Scalar markets are not winner takes all. The payout for long and short shares is the difference between the purchase price and settlement price.
For instance, let’s say there’s a market on how many points will be scored in a basketball game with a range from 80 to 120 points. If 1 share is purchased at 90 and 100 points are scored in the game, 10 Dai is earned per share purchased. If 1 share is sold at 90 and the final score is 100 points, 10 Dai is lost per share purchased.
Configure Resolution Information
Event Expiration date and time: This is the time at which Augur users can start reporting on the outcome of the market. Since Augur does not have any centralized operator, it uses a system of incentivized communal reporting (the Augur oracle) to deem what outcome occurred.
Event Expiration date and time should be set an appropriate time at which the outcome of the market question will be known. If the outcome is not known by this time, then the market will almost certainly resolve Invalid.
Provide a sufficient cushion of time between the event in question and Event Expiration to help ensure that the outcome will be known by this point. For example, if creating a market on the outcome of a sporting event, set Event Expiration to at least several hours after the game will most likely end to accommodate for potential delays due to weather and other factors. Resolution Rules: Each Template outputs pre-defined resolution rules which govern the how the market should be reported on. Designated reporter: The Designated Reporter is the Ethereum address selected to initially report on the market’s outcome. The Designated Reporter is most often set to the market creator, but it may be set to any Ethereum address.,The Designated Reporter will have 24 hours after Reporting Start Time to submit a report (select a winning outcome).
If a report is not submitted by this time, the market will enter Open Reporting, at which time anyone can report on it. If the Designated Reporter does not report within 24 hours of Reporting Start Time, then they will not receive back the no-show bond. Once the designated or open reporter submit a report, other Augur users will have the option of disputing it before the market resolves.
Set Fees
Market Trading Fee
Market Creator Fee: The Market Creator Fee is the percentage amount the market creator receives whenever market shares are settled, either during trading or upon market resolution. Set fees to under 2% in order for your market to show up to traders, by default. Markets currently average around 1% fees.
Affiliate Fee: This is the percentage of the Market Creator Fee that Affiliates collect. The Affiliate Allocation helps markets get promoted and acquire more traders. Affiliate marketers share links to Augur and then collect a portion of fees whenever someone follows that link and trades in a market. So the Affiliate Allocation incentivizes marketers to spread your market.
Add Initial Market Liquidity
It is essential to add liquidity to your market for users to see it. The tighter the spread and more liquidity you add, the higher your market will rank and the more people will see it.,Markets that do not have a 10% or smaller spread (for at least one outcome, if a multiple choice market), between the highest bid and the lowest offer, will not show up to traders, by default.
For instance, a Yes/No market with a .56 bid and .65 offer would have a 9% spread, so it will show up. A market with a .55 bid and .71 offer would have a 16% spread, so it will not show up.
Markets are sorted based on their liquidity, and more liquid markets rank higher and are more visible to traders. To increase the rank and visibility of your market, add Buy and Sell offers in a tight spread with sizable volume on each side.
A market must have a spread of 15% or smaller, inclusive of the Market Creator Fee, in order to be visible to traders in the default sort. If it’s a multiple choice market, it must have at least one outcome that satisfies these criteria.
For instance, a Yes/No market with a .55 bid and .65 offer would have a 10% spread, so it will show up. A market with a .55 bid and .71 offer would have a 16% spread, so it will not show up. This calculation accounts for fees. For instance, if a market has a .30 bid and a .44 offer, it will not show up if fees are over 1%.
Market Visibility: Markets are sorted based on their liquidity, and more liquid markets rank higher and are more visible to traders. To increase the rank and visibility of your market, add Buy and Sell offers in a tight spread with sizable volume on each side.
A market must have a spread of 15% or smaller, inclusive of the Market Creator Fee, in order to be visible to traders in the default sort. If it’s a multiple choice market, it must have at least one outcome that satisfies these criteria.
For instance, a Yes/No market with a .55 bid and .65 offer would have a 10% spread, so it will show up. A market with a .55 bid and .71 offer would have a 16% spread, so it will not show up. This calculation accounts for fees. For instance, if a market has a .30 bid and a .44 offer, it will not show up if fees are over 1%.
Review Market Details
Preview Market: Get a visual preview of how your market page will look once you complete market creation.
Review Invalid list again
A market is invalid if:
The market question, resolution details or its outcomes are ambiguous, subjective or unknown.
The result of the event was known at market creation time.
The outcome was not known at event expiration time.
It can resolve without at least one of the outcomes listed being the winner, unless it is explicitly stated how the market will otherwise resolve in the resolution details.
The title, details and outcomes are in direct conflict with each other.
The market can resolve with more than one winning outcome.
Any of the outcomes don’t answer the market question ONLY. (outcomes cannot introduce a secondary question)
If using a resolution source (a source is a noun that reports on or decides the result of a market), the source's URL or full name is NOT in the Market Question, regardless of it being in the resolution details.
If using a resolution source, it is not referenced consistently between the Market Question and Resolution Details e.g. as either a URL or its full name.
Player or team is not in the correct league, division or conference, at the time the market was created, the market should resolve as invalid.
Augur Markets:
Should resolve using general knowledge if the market does not have a resolution source in market question.
Cover events that occur between market start time and end time in the market question. If start time is not specificed in the market quetion, market creation date/time is used. If no end time is specified in market question, the event expiration is to be used. If the event occurs outside of these bounds, the market should resolve as invalid
Market details: Review the details once more to ensure everything is in order.
Resolution Information: Carefully review the resolution information to ensure that the market will resolve correctly.
🔮Tip: Template Markets will automatically generate resolution info based on the template chosen.
Funds Required
Validity Bond: Payable in ETH. You can get this back once your market resolves to anything other than invalid. This help prevent market creators from creating poorly defined markets.
No Show Bond: Payable in REP. You can get this back once your designated reporter (likely the same address as the market creator) shows up in time to give the initial report of the answer for the market. There is a time limit to do this, which is currently set to 3 days after the market end time.
Total: This is the total funds required to create your market, including the validity bond, no-show bond, and gas fee.
Once you're comfortable with all of your settings, go ahead and submit your transaction.
Success! You've created your market
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