Prediction markets depend on clarity, consistency, and trust. Each rule written defines how outcomes are judged and directly shapes user confidence and trading behavior.

This guide provides a practical framework for writing strong, easy to understand market rules. It covers how to:

  1. Create clear and fair resolution statements that avoid confusion.
  2. Define key terms and include precise timeframes for all outcomes.
  3. Identify trusted, verifiable sources to ensure objective resolution.
  4. Address edge cases and exceptions to prevent disputes.
  5. Apply consistent structure and tone across all markets.

Core Principles of Good Rules

1. Keep It Clear

Write in simple, direct language that anyone can understand. Avoid technical jargon, legal language, or overly complex sentence structures.

Example of clear language:

Do Don't
"This market will resolve to 'Yes' if Donald Trump meets with Xi Jinping between July 21, and October 31, 2025, 11:59 PM ET." "This market will resolve affirmatively should the designated parties engage in bilateral diplomatic discourse within the specified temporal parameters."

2. Make It Certain

Every rule must provide a clear, binary outcome that can be objectively determined. Ensure only one clear outcome is possible. Avoid vague words.

Example of unambiguous criteria:

Do Don't
"An exchange of words, handshake, direct conversation, or other clear personal interaction between the named individuals will qualify as a meeting." "A meaningful interaction between the parties will qualify as a meeting."

3. Cover All Cases

Rules must address edge cases, exceptions, and potential ambiguities. Explain what does and doesn't count to avoid confusion later.

Example of comprehensive coverage:

Merely standing in proximity, making eye contact, or being present in the same room or event without direct interaction will not qualify.