Why creators get paid

Prediction markets need three things to work: markets to trade on, liquidity, and users. Every existing exchange treats "markets to trade on" as a free good — the exchange (or the MMs) create markets, users trade them, exchange keeps the fees.

PAX flips that. Whoever opens a market takes the resolution risk (proposing wrong evidence, mistiming a cutoff, choosing an ambiguous question). They should share the upside. So we code 10 % of platform fee to the market creator, permanently, for the life of the market.

The math

Example — a K-pop event market with $10k daily volume
Daily volume routed through the market$10,000
Platform fee (30 bps of notional)$30
4-way split
  → LP (40%, when lp_backed) / Treasury (70%, when platform_mm)$12 or $21
  → Platform treasury (30% / 0%)$9 or $0
  → Attributing builder (20%)$6
→ Market creator (10%)$3 / day

Scale that market up. A single hot market doing $500k daily volume accrues $150/day → ~$4,500/month to the person who opened it. A market that's alive for 6 months accrues ~$27k with no ongoing effort.

How to become a creator

  1. Any Trade-Capped or higher builder can submit a proposal via pax.composer_proposal_submit (MCP) or POST /v1/composer/proposals (REST). Sandbox-tier keys cannot open live markets.
  2. Proposal enters admin review — resolution rules must be unambiguous and sources must be independently verifiable.
  3. On approval, the market opens with market_templates.owner_builder_id set to your builder id.
  4. Every fill on that market for its entire lifetime writes a fee_ledger row with creator_recipient_id = <your bld_ id> and creator_share = fee_total × 0.10.
  5. Monthly settlement cron pays out creator_share in USDT (or the on-chain equivalent for chain-settled markets).

Attribution durability

The fee_ledger.creator_recipient_id is snapshotted at fill time. If you later transfer the template to another builder, historical fills still credit you — future fills go to the new owner. Both are recorded as immutable rows (append-only trigger enforced at the SQLite layer).

What makes a good market