How Novig Works: Market Mechanics, Pricing, and Settlement

Who uses Novig and which market types it offers

Novig is used by traders, researchers, and people who want a market price for a future event. In simple terms: Novig hosts markets where people buy contracts that pay $1 if a stated outcome occurs, and $0 otherwise.

The key market formats you’ll see on Novig:

• Yes/No: a Yes contract pays $1 if the event happens (and $0 if it doesn’t). A No contract is the inverse.
• Multi‑outcome: more than two mutually exclusive outcomes (for example, Team A, Team B, Draw). Each outcome has its own contract and the payouts sum to $1 across outcomes on resolution.
• Props (proposition markets): specific measurable results (e.g., “Candidate X’s vote share in State Y > 50%”) with custom resolution criteria.

Who uses each format:

• Researchers and forecasters prefer Yes/No and multi‑outcome for clear probabilities.
• Casual users and subject‑matter fans often trade props because they map to specific, interesting facts.

Novig’s order‑book pricing vs AMM pool pricing

Here’s the basic idea: Novig primarily uses an order‑book matching engine (buyers and sellers post bids and asks) while many other prediction platforms use pool‑style automated market makers (AMMs) where prices come from a bonding curve and shared liquidity.

Feature	Novig (Order book)	AMM / Pool platforms (e.g., bonding‑curve style)
Pricing engine	Continuous order book (bids/asks matched)	Automated market maker (mathematical curve)
How price updates	When a trade matches or limit orders change the top of book	When someone adds/removes liquidity or places a trade against the pool
Visible spreads	Explicit bid/ask spread shown to users	Implicit spread via slippage from curve
Liquidity source	Other users posting orders	A liquidity pool (capital provided by LPs or protocol)
Slippage behavior	Small trades can have minimal slippage if book depth exists; large trades may move the book	Slippage grows with trade size against the pool’s token reserves
Best for	Traders wanting control over price and limit orders	Markets needing continuous, automatic liquidity without many counterparties

The key thing to know is where price comes from: an order book shows other users’ intentions directly, while an AMM computes price from a formula and shared liquidity.

A worked buying example on Novig

If a Yes contract costs 62¢ and pays $1 if the event happens, buying one contract costs $0.62. If the event happens, the contract pays $1, so the gain before fees is $0.38. If the event does not happen, the contract expires at $0, so the loss is $0.62.

On Novig that 62¢ price would typically be the lowest ask on the order book. You can either place a market order to buy immediately at that ask, or place a limit order at a lower price and wait for a seller to match it.

How contracts resolve and how settlement is handled on Novig

Here’s the basic idea: markets have a clearly defined resolution condition and a resolution time. When a market resolves, each contract is converted to a final cash value (usually $1 or $0 for Yes/No markets). Settlement is the platform process that credits the winners and closes the losing contracts.

Steps in Novig’s typical resolution flow:

1. Market definition: the market page shows the exact wording of the resolution condition and the resolution source (e.g., an official data feed, an appointed resolver, or an oracle).
2. Resolution event: when the event’s outcome is known, the designated resolver or automated feed reports the result.
3. Validation window: some markets include a short window for disputes or evidence if the resolution source is ambiguous.
4. Settlement: once the result is final, winning contracts are paid out (credited to your platform balance) and losing contracts become worthless.

What you should watch for:

• Resolution wording. Small wording differences change what counts as a win.
• The declared resolution source. If the market relies on an outside data feed or named official source, that source’s timing and definitions control settlement.

User-facing considerations: fees, liquidity features, and interface basics

Common mistake: treating all prediction platforms as identical. Novig’s order‑book model changes the practical user experience.

Fees and costs

• Trading fees: Novig charges fees on trades and may charge market creation or reporting fees. Fee rates change; check Novig’s fee page before trading.
• Implicit costs: bid/ask spread and slippage are the real cost of executing an order; limit orders can reduce these costs if the book has depth.

Liquidity and order types

• Market orders execute against the book and take liquidity (you pay the ask). Limit orders add liquidity and can reduce execution cost, but they may not fill.
• Depth matters: a thin order book can make even modest market orders move the price; AMM pools avoid this by design but at the expense of formulaic slippage.

Interface basics you’ll use on Novig

• Order entry: choose market, size (number of contracts), and order type (market or limit).
• Book view: top bids and asks, recent trades, and depth display help you judge execution risk.
• Position and balance: resolved contracts convert to cash balance immediately after settlement; unsettled positions remain marked by current market prices.

Which model fits which reader

• If you want precise control over execution price and like using limit orders, an order‑book platform like Novig generally fits better.
• If you want guaranteed continuous liquidity without watching for counterparties, pool/AMM markets are easier to enter but expose you to predictable slippage formulas.

Keep reading

• What Are Prediction Markets?
• How Do Prediction Markets Work?
• How to Read Prediction Market Prices