Security and Risk
Prediction markets involve risk of loss. Arenaton must stop new unsafe risk without seizing user assets.
Forbidden Admin Actions
Section titled “Forbidden Admin Actions”Admins cannot:
- Transfer user USDC.
- Transfer user outcome shares.
- Change user Smart Account owners.
- Seize or freeze direct redemption.
- Edit historical fills.
- Change market terms after trading opens.
- Resolve markets outside published rules.
Incident Controls
Section titled “Incident Controls”Incident controls can pause new market creation, pause new order intake, disable paymaster sponsorship, hide affected markets, move markets to close-only where rules allow, delay finalization during a correction window, and notify users.
Responsible Use
Section titled “Responsible Use”Required product controls include self-exclusion, cool-off periods, trading limits, exposure limits, loss limit alerts, category controls, one-click cancel all, and close-only mode.
Self-exclusion blocks new exposure but should still allow cancellation, closing, and redemption where rules permit.
Market Integrity
Section titled “Market Integrity”The exchange must prohibit insider trading, employee conflicts, wash trading, spoofing, self-trading, and manipulation of data sources or event outcomes.