Glossary

CFM (Conditional Funding Market) A mechanism that employs prediction markets to allocate funding by forecasting the impact of proposals on a chosen metric. Learn more →

Collateral Token The underlying asset (e.g., USDC) that is deposited by traders to create and trade a given proposal's Funded and Not Funded markets.

Conditional Market A market that forecasts the metric contingent on a specific outcome; every proposal has two: one valuing the metric if funded (the "Funded" market) and one valuing the metric if not funded (the "Not Funded" market). Learn more →

Conditional Token A token redeemable only when its linked outcome occurs: funded markets are denominated in "Funded" tokens, while not-funded markets are denominated in "Not Funded" tokens. Learn more →

Decision Rule A rule used by the Funding Entity to select which proposals to fund based on the market forecasts (e.g., "fund the top 3 proposals with the highest forecasted impact"). Learn more →

Forecasted Impact The calculated difference between a proposal's "Funded" metric forecast and its "Not Funded" metric forecast, representing the market's estimate of the proposal's impact on the metric, if it receives funding. Learn more →

Funding Entity The organization, such as a DAO, that launches a CFM to distribute funds and defines the parameters for the funding round. Learn more →

Metric The specific, quantifiable measure (e.g., Total Value Locked, user count) chosen by the Funding Entity to evaluate each proposal's performance. Learn more →

Oracle An on-chain service (specifically Reality.eth in this context) that reports the final, real-world value of the metric to the smart contract for market resolution. Learn more →

Reported Metric The final ground truth value of the metric, e.g. TVL, reported by the oracle to the smart contract, used to determine the redemption price of UP and DOWN tokens.

UP and DOWN tokens Long/short claims on a market's settlement value. • In CFMs, tokens exist per conditional outcome (Funded / Not funded), and UP's price reflects the forecast under that outcome. • In KPI markets, tokens track the unconditional monthly KPI. Learn more →

KPI market An unconditional prediction market that settles on an observed KPI (e.g., TVL) at a defined period close.

EOM (end‑of‑month) A monthly closing snapshot used for KPI market settlement; defined in high‑level methodology docs.