FactCheck.fun Documentation

Last Updated: April 30, 2025.

1 Overview

1.1 Mission

Our goal is simple: price the truth.
Bad information costs society trillions. By letting anyone trade on factual claims, we surface collective intelligence and put money behind real evidence.

1.2 Two Core Engines

Engine

Short description

Dynamic Pari-Mutuel (DPM)

One shared pool. Payouts are decided after the pool closes. Odds = $Yes in pool ÷ $Total.

Central Limit Order Book (CLOB)

Classic order book. One token per market, priced 0-1. Trades settle instantly; resolution uses Volume-Weighted Average Price (VWAP) for FactCheck markets, and a preset specific-resolution condition for Information markets.

The rest of the docs explain how each engine works and when we use which.

2 Market Models

2.1 Dynamic Pari-Mutuel (DPM) FactCheck Markets

How it works

  • Buy “Yes” or “No” pool tokens.
  • Price moves with total money on each side.
  • You cannot short or sell early.
  • When the window closes, the pool is split pro-rata among the winning side.

Resolution

A panel of credibly neutral AI agents reviews submitted evidence and assigns a final outcome. The decision is final unless the market is cloned with stronger evidence.

Key Rules
  • Flat 2.5% fee on every buy.
  • 5% of that fee goes to the market creator, 45% to the referrer (if present); 50% flows to the protocol treasury.
  • No maker-taker distinction.

2.2 Central Limit Order Book (CLOB) Markets (One-Token Architecture)

2.2.1 Core Mechanics
  • One token priced from 0 to 1 USDC (price = implied probability).
  • Yes: buy tokens at the best ask; collateral = price × size.
  • No: sell (mint) tokens at the best bid; collateral = (1 − price) × size.
  • Matching is first-price FIFO; all trades are fully collateralised on match.
2.2.2 Resolution – Information Markets on CLOB

Each market lists an objective public data source. At expiry we check the source: if the stated condition is true, tokens pay 1 USDC, else 0.

2.2.3 Resolution – FactCheck Markets on CLOB
  • AI confidence score (CLOB only) — the score is the heartbeat of every FactCheck-style order-book market.
  • AI agents assign a confidence from 0 to 100% based on submitted evidence. Stronger evidence drives the score higher.
  • When confidence hits 90%, trading halts and the market enters resolution mode.
  • We calculate a 24-hour VWAP and use that as the resolution price; the final block inside that window is randomly selected to deter sniping and market manipulation
  • Payout per trader = (resolution price − average entry price) × number of tokens.

This scheme aligns price with evolving evidence and makes last-minute manipulation prohibitively expensive.

2.2.4 Maker-Keeper Liquidity Bots

Bots post laddered quotes, widen spreads during volatility, rebalance inventory and arbitrage external feeds—so you always have a counter-party.

2.2.4 Maker-Keeper Liquidity Bots

Role

Fee

Maker (adds liquidity)

0%

Taker (removes liquidity)

0.5%

Fees are deducted and routed to the treasury when collateral is locked.

2.3 Market-Type Matrix

Model

FactCheck

Information

DPM

✅ Live today. AI decides outcome; pool funds stay locked until resolution.

🚫 Not offered

CLOB

✅ AI confidence score triggers resolution when ≥ 90%. VWAP sets settlement price. You can trade in and out.

✅ Binary condition checked on external data. You can trade in and out.

3 On-Boarding & Wallet Operations

3.1 Sign-Up & Account Creation

Option

What happens

When to use

Twitter / X

One-click OAuth via Privy. Your handle is the default display name (editable).

Fastest if you already use X.

Email

Enter address → click Submit → confirm magic-link. Privy spins up a custodial smart-wallet.

You prefer not to link social or crypto—yet..

Connect Wallet

Link any EVM wallet (MetaMask, Rabby, Coinbase Wallet). Privy wraps it so trades are gas-sponsored.

You already manage on-chain assets.

Security — your private key never leaves your device; FactCheck only sees signed payloads.

3.2 Depositing USDC

1. Wallet tray → Add funds.

2. Pick a rail:

Rail

Flow

Fees

External wallet

Send USDC to your deposit address. Funds are credited after a few seconds

Network gas.

Internal transfer

Move USDC between your FactCheck sub-accounts.

Free.

QR / address share

Show QR or raw address so third parties can fund you.

Sender pays gas.

Balance updates in real time; funds are trade-ready immediately.

3.3 Withdrawing USDC

1. Wallet tray → Withdraw.

2. Enter a Base-mainnet address and amount (≥ 1 USDC).

3. Sign the zero-gas message; funds arrive in ~30 s (two Base blocks).

Parameter

Default

Notes

Gas

Sponsored by FactCheck

No user gas.

Daily limit

50 000 USDC

Contact support to raise.

Cooldown

None

Unlimited daily withdrawals within limit.

Tip — Used email/Twitter sign-in? Withdraw to your browser wallet, then reconnect with Connect Wallet for self-custody.

3.4 Troubleshooting & FAQ

Issue

Likely cause

Fix

Deposit confirmed but balance zero

Sent on wrong chain

Bridge to Base, then re-deposit.

"Invalid address" on withdraw

Non-Base address

Use a Base 0x... address.

Magic-link not working

Expired / spam folder

Request a new link.

3.5 Quick-Start Checklist
  1. Sign up.
  2. Deposit any amount of $USDC.
  3. Claim daily XP.
  4. Place a limit/market order (CLOB) or a DPM buy.
  5. Track P&L in Portfolio.
  6. Withdraw idle funds any time (DPM stakes lock until resolution).

4 Trading Guide — CLOB

4.1 Interface
  1. Order form right: Limit or Market, size, Buy / Sell.
  2. Order book centre: green bids, red asks.
  3. Positions tab: entry, size, collateral, P&L.
4.2 Limit Orders (provide liquidity)
  1. Choose price and size.
  2. UI shows collateral.
  3. Sign → order rests until filled or cancelled.
4.3 Market Orders (take liquidity)
  1. Choose side and amount.
  2. Check slippage notice.
  3. Execute → fills instantly; 0.5% taker fee applied.
4.4 Example Trade
  • Alice buys 100 tokens at 0.60 (collateral = 60 USDC).
  • Dave shorts 100 at 0.60 (collateral = 40 USDC).
  • If the claim resolves 1, Alice withdraws 100 (profit = 40); Dave loses his 40.
  • Reverse outcome if it resolves 0.
4.5 Cancel / Modify / Close
  • Cancel — click ✕ in Open Orders; collateral unlocks.
  • Close — submit an opposite trade to flatten exposure.

5 Fees Summary

Engine
CLOB
DPM
Maker
0%
n/a
Taker
0.5%
n/a
Flat buy
-
2.5%

Referral split (DPM) — 45% of the 2.5% fee goes to the referrer, 5% to the creator, 50% to the treasury.

6 Launch Slate — May 2025

Title

Model

Type

YES = 1 criteria

Expiry

Payout

Fed Cut at May FOMC?

CLOB

Information

Upper bound in FOMC statement < 5.25%

07 May 2025 14:00 ET

Seconds after statement

Did Jeffrey Epstein kill himself?

CLOB

FactCheck

AI confidence ≥ 90% — then VWAP

On trigger

TBD

Bitcoin ≥ 100 000 USD on 30 Jun 2025

CLOB

Information

Coinbase hourly close ≥ 100 000 USD

30 Jun 2025 23:00 UTC

01 Jul 2025

Nation-Wide TikTok Ban by 31 Jul 2025

CLOB

Information

Signed statute / EO forces ban or divest

31 Jul 2025 23:59 ET

Immediate

GPT-5 Paper Before 1 Oct 2025

CLOB

Information

PDF titled "GPT-5" by OpenAI publicly released

01 Oct 2025 00:00 UTC

Immediate

Maker-keeper bots seed liquidity from minute one.

7 Glossary

  • CLOB — Central Limit Order Book.
  • VWAP — Volume-Weighted Average Price.
  • Maker — posts resting liquidity.
  • Taker — hits resting liquidity.
  • Confidence score — live AI probability (0-1) that a statement is true.

8 FAQ (Quickfire)

  • Do I pay gas? No, FactCheck sponsors all gas.
  • Can I withdraw anytime? Yes for idle funds; DPM stakes remain locked until resolution.
  • Why only binary markets? One-token design maps cleanly to 0-1 payouts; multi-outcome would need multiple tokens and more collateral.
  • Is FactCheck legal where I live? Local laws vary—check before trading.

9 Risk & Disclaimer

Trading on FactCheck.fun is speculative. Do not risk money you cannot afford to lose. Past results do not guarantee future performance. Nothing herein constitutes investment advice.