> For the complete documentation index, see [llms.txt](https://foregate.gitbook.io/foregate-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://foregate.gitbook.io/foregate-docs/readme/how-does-foregate-work.md).

# How Does ForeGate Work?

Within the cyclical ecosystem of prediction markets, "Valuable Questions" and "Liquidity" serve as the two core engines. The "Valuable Questions" provided by creators must be **clear, objectively verifiable, uncertain, timely, and of market relevance to become high-quality subjects for trader participation.** Meanwhile, traders inject **liquidity** through trading activities, enabling the market to function with price discovery and trading depth.\
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Our platform and oracles together **establish a credible, neutral infrastructure,** ensuring fair outcome verification and value distribution. These three components are interdependent, collectively forming a self-driven, credible, and sustainable bilateral market ecosystem.<br>

### **Towards a Balanced Ecosystem Design**

Prediction markets are a sophisticated system driven by both creators and traders. This creates a powerful ecological cycle: creators design "Valuable Questions" to attract traders; traders inject "Liquidity and Views" to energize the market; active markets generate revenue and reputation for creators, incentivizing them to create more high-quality markets, which in turn attract more traders.

Within this system, every participant contributes in their own way, transforming fragmented knowledge and beliefs into collective predictions about the future. The two sides rely on each other, jointly constructing the complete market ecosystem. The true power of prediction markets lies in converting dispersed knowledge, perspectives, and risk preferences into continuous, transparent price signals, allowing the market to realize its full potential as an infrastructure for collective intelligence.

### **Creator Dimension**

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* <mark style="color:orange;">**Create Markets**</mark> — Pose clear, verifiable questions, such as "Will Candidate X win the election?"
* <mark style="color:orange;">**Set Market Rules and Parameters**</mark> — Define outcome options, trading duration, and other parameters, and select reliable oracles to ensure fair settlement.
* <mark style="color:orange;">**Publish and Manage Markets**</mark> — After a market is launched, creators can not only participate in trading but also earn ongoing revenue from transaction fees as the market grows active. A well-designed market attracts liquidity, and successful settlements build reputation for the creator.<br>
  {% endcolumn %}

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#### &#x20;*<mark style="color:orange;">**Create Markets, Build the Ecosystem**</mark>*

<div data-with-frame="true"><figure><img src="/files/IdebdOc0rkiRxW5k1QQY" alt="" width="563"><figcaption></figcaption></figure></div>

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### **Trader Dimension**

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{% column width="33.33333333333333%" %}

#### *<mark style="color:orange;">**Participate in Markets, Trade Your Views**</mark>*

<div data-with-frame="true"><figure><img src="/files/ZHs6IFSSvh7qyvE1knBE" alt=""><figcaption></figcaption></figure></div>
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####

* Browse popular prediction topics (Explore Markets) across a variety of categories. Discover events that match your interests and expertise
* <mark style="color:orange;">**Trade Your Beliefs**</mark> – Act on your market views by taking "Yes" or "No" positions. Our smooth trading interface makes executing your strategy straightforward
* <mark style="color:orange;">**Create Your Own Market**</mark> – Launch your own prediction market in just a few steps. Simply define the key parameters: the prediction question, possible outcomes (e.g., "Yes"/"No"), and the market's start and end times.
* <mark style="color:orange;">**Resolve & Earn**</mark> – Once an event concludes, the market is settled, and profits are distributed fairly.
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