Documentation๐Ÿ“Š Predictions Markets๐Ÿ’ง Markets & Liquidity

Markets & Automated Liquidity

The effectiveness of a prediction market depends on liquidity. The Triad White Label solution includes an advanced Market Maker Bot system so there is always a counterparty for user orders.

2.1 Triad Liquidity Bots

Unlike passive systems that only match user orders, the platform uses proprietary bots that act as Liquidity Providers.

  • How it works: Bots fill the Order Book by placing buy and sell orders at different price levels.
  • Execution guarantee: When a user wants to buy a position (e.g. โ€œTeam A winsโ€), they donโ€™t wait for another user to sell. The bot provides the counterparty immediately.
  • Dynamic spread: The algorithm adjusts the spread (bidโ€“ask) based on event volatility. In calm periods it tightens the spread to encourage volume; in uncertain periods it widens the spread to protect capital.

2.2 Bot Risk Management

The White Label operator controls bot risk from the admin panel:

  • Exposure limits: Maximum notional the bot can hold in a single position, limiting large moves against the bot.
  • Inventory management: The system aims to keep the botโ€™s inventory neutral (flat), passing risk to end users (traders) and earning mainly from fees.

Documentation based on Triad Markets White Label Docs.