Overview
Glossary
The terms used across Skepsis, defined briefly.
Continuous-outcome market. A market that prices the range a number lands in, not a yes or no.
Range, time, options. The three market shapes. Range: where a number lands. Time: when a level is reached. Options: one of N named outcomes, priced on one shared curve.
Bucket. One interval of the outcome range. Markets are split into buckets; you take a position on one or more.
LMSR. Logarithmic Market Scoring Rule. The pricing rule that turns shares held in each bucket into a price, on one continuous curve.
Alpha. The LMSR liquidity parameter. Higher alpha means deeper liquidity and smaller price impact per trade.
Alpha decay. A scheduled reduction of alpha over a market’s life, from an initial value to a floor. It thins the book near resolution to defend liquidity providers against late-information snipers.
Basis risk. The gap between the outcome you priced and the outcome that paid. Binary markets carry it; Skepsis is built to remove it.
Uniform prior. The starting state where every bucket is equally likely. Payoff math is quoted at uniform prior: payoff = N / k for k of N buckets.
Vault. A single ERC-4626 contract that seeds every market and recycles capital on resolution.
Position. Your holding in a market, issued as an ERC-1155 token.
Resolution. Settlement of a market from a Chainlink numerical feed at a set time.
Curated. Every market is reviewed and listed by the team. Skepsis is not permissionless.