> For the complete documentation index, see [llms.txt](https://docs.yamata.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yamata.io/prediction-markets/what-are-prediction-markets.md).

# What Are Prediction Markets?

Prediction markets allow users to commit funds to specific outcomes of future events. When the event resolves, users who backed the winning outcome share the total pool proportionally, creating market-driven forecasts for everything from sports to politics to crypto prices.