The Setup
Miguel is planning a beach wedding in Miami for next Saturday. Everything is set—venue, catering, decorations—but one thing is out of his control: the weather. He finds a Skepsis market:“What will the high temperature in Miami be on Saturday, December 14th?” Range: 65°F - 95°FThe current probability distribution shows:
Resolution: Saturday 6:00 PM local time
Current Liquidity: $5,000 USDC
The Players
💒 Miguel: The Groom (Hedger)
Miguel’s not trying to profit—he’s trying to hedge his wedding risk. His logic: “If it’s too hot (85°F+), I’ll need to rent extra fans and buy more ice for drinks. That costs about $200. Let me hedge that risk.” His bet:- Range: 85°F - 95°F (the “too hot” zone)
- Investment: $50 USDC
- Odds received: 3.3x
- Potential payout: $165 if too hot
👰 Sophia: The Bride (Optimist)
Sophia checks the forecast obsessively. She sees 79°F predicted with high confidence. Her thesis: “The forecast is reliable this close to the date. I’ll bet on perfect weather.” Her bet:- Range: 76°F - 82°F
- Investment: $75 USDC
- Odds received: 2.5x
- Potential payout: $187.50 if perfect weather
📋 James: The Wedding Planner (Professional)
James has planned 200+ Miami weddings. He knows December weather patterns better than any app. His thesis: “December in Miami always surprises people. That 65-75°F range is underpriced. Cold fronts happen more than tourists expect.” His bet:- Range: 70°F - 76°F
- Investment: $100 USDC
- Odds received: 6x
- Potential payout: $600 if cooler weather
🌴 Local Maria: The Long-time Resident
Maria has lived in Miami for 40 years. She’s been watching the sky. Her thesis: “I feel it in my bones—this weekend will be HOT. That 90°F+ range is a steal at 8%.” Her bet:- Range: 90°F - 95°F
- Investment: $30 USDC
- Odds received: 12.5x
- Potential payout: $375 if scorching
The Week Progresses
Monday: Forecast says 81°F. Sophia feels confident. Wednesday: Updated forecast: 78°F. James raises an eyebrow. Friday evening: Cold front warning! Temperature might drop to low 70s. Saturday morning: It’s cool and breezy. Miguel’s guests are commenting on the “perfect weather.” Saturday 6:00 PM - Resolution: The official high was 74°F.The Results
| Player | Range | Result | Outcome |
|---|---|---|---|
| Miguel | 85°F - 95°F | ❌ LOSE | It wasn’t hot—but his wedding was perfect! |
| Sophia | 76°F - 82°F | ❌ LOSE | Just 2 degrees too cold |
| James | 70°F - 76°F | ✅ WIN | His experience paid off! |
| Maria | 90°F - 95°F | ❌ LOSE | Her bones lied this time |
The Lessons
1. Prediction Markets as Insurance
Miguel didn’t “lose”—he bought peace of mind. His $50 was insurance against a bad outcome. The wedding was perfect, so he happily “lost” that hedge.2. Local Knowledge is Alpha
James’s 200+ weddings gave him an edge. He knew December cold fronts were underpriced at 10%. Domain expertise beats algorithms.3. Narrow Ranges are Risky
Sophia was only 2°F away from winning. A slightly wider range ($74-82°F) would have captured the outcome:- Original: 76-82°F at 2.5x ❌
- Alternative: 74-84°F at 1.8x ✅
4. Forecasts Aren’t Prices
The forecast said 81°F on Monday. The market priced 80-85°F at 35%. But weather models update, and the market should have updated faster. Early bettors on the cold side got great odds.Real Talk: Wedding Insurance
Miguel’s strategy is actually how many people should think about prediction markets—as insurance, not gambling.| Scenario | Traditional Insurance | Skepsis Hedge |
|---|---|---|
| Bad outcome (hot weather) | File claim, wait weeks | Instant payout |
| Good outcome (perfect weather) | Premium “wasted” | Bet “lost” |
| Flexibility | Fixed coverage | You choose the scenario |
| Payout speed | Slow | Immediate on-chain |
Try It Yourself
Weather markets let you:- Hedge outdoor event risk
- Bet on your local knowledge
- Speculate on forecaster accuracy
Try it free on testnet. Sign in with Google, claim test USDC, and explore weather markets. No real money, no gas fees.Launch Skepsis →
More Examples
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