How Augur Works

Augur is a decentralized oracle and prediction market platform. Users feed real world information into Augur's contracts. Augur ensures the accuracy of this real world information by providing a financial incentive for REP token holders to correct markets they believe have been reported on incorrectly. There are several ways users can participate in Augur: you can trade shares in markets, create prediction markets, or participate in the reporting system to keep the Augur oracle honest.

Markets & Trading

On Augur, market creators set the event start and end times, a designated reporter, resolution source, and settlement fee. Traders can purchase shares in Augur markets immediately after market creation. The Augur contracts maintain an order book for every market created, and offer shares at the current best price. Settlement fees are paid by traders when positions are settled within a market. After the event has occurred, the outcome is determined by the designed reporter, or ultimately, Augur’s decentralized oracle, if necessary.

Reporting

REP (Reputation) token holders can participate in the Augur reporting system. REP token holders have the ability to dispute the tentative outcome of any Augur market within 7 days of resolution by staking a dispute bond. When doing so, the Augur market will go into a dispute round, where REP holders can stake REP tokens on one of the markets possible outcomes. If the tentative outcome is overturned, users who participated by staking on the new winning outcome will receive a 50% ROI. There is always a financial incentive to keep the Augur oracle reflecting reality.

Why Choose Augur?

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    No Central Servers

    Augur is decentralized and exists as a set of contracts on the Ethereum blockchain. There is no central point of failure or control.

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    Create Your Own Markets

    Users can use Augur to create any prediction market. There are no limitations on the types of markets users can create.

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    Lower Fees

    When it's time to get paid out, users will endure a lower cost for settling their position compared to Betfair or PredictIt.

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    Distributed Reporting

    REP token holders are financially incentivized to ensure Augur markets resolve in alignment with reality.

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    Automated Payouts

    Trustless, automated and transparent payouts are now possible. When your position settles, the Augur contracts pay you immediately.

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    No Limits

    There are no limitations or restrictions on Augur. Anyone, anywhere in the world can freely participate in Augur markets.