> For the complete documentation index, see [llms.txt](https://reflow-1.gitbook.io/reflow.bet-space/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://reflow-1.gitbook.io/reflow.bet-space/product-guides/prediction-markets.md).

# Prediction Markets

A Prediction Market is a platform that allows participants to make predictions or speculate on the outcomes of future events, such as elections, sports events, financial markets, or even societal trends. It operates on the principle of collective intelligence, aggregating the insights and opinions of a diverse group of users to form predictions.\
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Reflow employs a Parimutuel Betting System, a dynamic framework wherein participants wager against each other within a stake pool. Unlike fixed odds, the betting odds fluctuate in response to market demand, creating an interactive and evolving landscape.

The platform offers diverse prediction options, including:

1.  **Price Prediction:** In this format, participants engage in binary options betting, speculating on whether prices will rise or fall.
2. **Event Prediction:** involves participants predicting the outcomes of various events, adhering to the conventional prediction market concept.
3. **AI Battles:** Users can predict the outcomes of AI-driven Esports game simulations, adding a futuristic and engaging dimension to the prediction experience.

To facilitate these activities, the house imposes a nominal 5% tax on the winning side of each pool, ensuring the sustainability and continued development of the platform. This approach not only fosters a dynamic and interactive prediction environment but also upholds transparency and fairness in the prediction processes.