> For the complete documentation index, see [llms.txt](https://about.wocstreet.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://about.wocstreet.com/prediction-game-deprecated/technical-stuff.md).

# Technical Stuff

We have carefully studied multiple prediction market algorithms below:\
\
[Logarithmic Market Scoring Rule](http://mason.gmu.edu/~rhanson/mktscore.pdf), invented by Robin Hanson, required a manually set liquidity parameter.\
\
[Dynamic Parimutuel betting](https://dl.acm.org/doi/10.1145/988772.988799), has proven to be unfair to early players because the payout is determined at the end of the event.\
\
[Constant function market make](https://en.wikipedia.org/wiki/Constant_function_market_maker)r, used by Uniswap and Polymarket, but the liquidity providers will inevitably lose money. Polymarket has recently decided to move away from its AMM.\
\
Existing Automated Market Maker (AMM) algorithms aim to mitigate financial losses for market operators. Therefore, there are always some flaws in each algorithm.\
\
WOC Street invented a modified algorithm and will continue to iterate based on user feedback. \
\
To maintain the stability of the market, a dynamic trading fee is also imposed. This fee helps to avoid inflation and arbitrage at the end of the event.

[Cultivatelabs](https://www.cultivatelabs.com/crowdsourced-forecasting-guide) provide an ultimate guide to the prediction market if you are interested.\ <br>


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