> For the complete documentation index, see [llms.txt](https://limelight-1.gitbook.io/limelight-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limelight-1.gitbook.io/limelight-docs/for-creators/creating-a-market.md).

# Creating a Market

Pose a question, define the outcomes, seed some liquidity, and set your creator fee. When people trade in your market, you earn a direct cut of every trade.

## Who Can Create

For about the **first month** after launch, market creation is **open to everyone**. After that, it's gated to holders of the [Limelight Catalyst](/limelight-docs/for-creators/limelight-catalyst.md) badge — and creating a market during the open window earns you that badge automatically. See [Limelight Catalyst](/limelight-docs/for-creators/limelight-catalyst.md) for both paths.

## Step by Step

{% stepper %}
{% step %}

## Write a Clear Question

* Good: "Will Bitcoin exceed $150,000 by December 31, 2026?"
* Good: "Will the Fed cut rates at their June 2026 meeting?"
* Vague: "Will Bitcoin moon?"
  {% endstep %}

{% step %}

## Define the Outcomes

* **Binary (YES / NO)** — most common
* **Multi-outcome (A / B / C / D)** — for questions with several answers

Outcomes must be mutually exclusive (only one can be true) and collectively exhaustive (at least one must be true).
{% endstep %}

{% step %}

## Set the Observation Window

Every market needs an explicit observation window — the time range during which the resolving event is measured.

* **Start:** market creation time (default)
* **End:** market expiry time

> Don't write "on or before April 20" without a start time. A threshold market without a start window can be misresolved from pre-creation data. Always bound both ends.
> {% endstep %}

{% step %}

## Choose Resolution Sources

For **price, crypto, FX, and commodity** markets, the canonical source is the **Pyth** price feed, read on-chain at resolution. For event markets, pick 2–3 verifiable, publicly accessible sources. See [Resolution Sources](/limelight-docs/for-creators/resolution-sources.md) for the approved list per category.
{% endstep %}

{% step %}

## Write Tight Resolution Rules

Your rules must answer all six questions:

1. What exactly triggers each outcome?
2. What is the definitive source?
3. What time zone and deadline applies?
4. What is the observation window? (start + end timestamps)
5. What happens if cancelled, delayed, or partially completed?
6. Do edge cases count? (wicks, recounts, revisions)
   {% endstep %}

{% step %}

## Seed Initial Liquidity

The minimum initial liquidity is **$100**. Deposit collateral (USDCx) to provide starting liquidity. You earn LP equal to your seed amount. Seeding $100 earns 100 LP; seeding $500+ auto-boosts.
{% endstep %}

{% step %}

## Set Your Creator Fee (0–2%)

<table><thead><tr><th width="163">Fee Level</th><th>Trade-off</th></tr></thead><tbody><tr><td>0%</td><td>Maximum volume. Good for reputation-building.</td></tr><tr><td>1%</td><td>Balanced. A good starting point.</td></tr><tr><td>2%</td><td>Higher per-trade revenue, best with captive audiences.</td></tr></tbody></table>
{% endstep %}

{% step %}

## Launch

Your market is submitted for admin review (**Pending** stage). Once approved, it goes **Active** and traders can start buying and selling within minutes. See [Market Lifecycle & Disputes](/limelight-docs/knowledge-base/market-lifecycle-and-disputes.md).

> Markets don't stop after launch. As trades flow, prices move and your initial position drifts out of alignment with the live market. See [Rebalancing Your Market](/limelight-docs/for-creators/rebalancing.md) (coming soon) for how to swap your share inventory between outcomes and keep your exposure aligned.
> {% endstep %}
> {% endstepper %}

## Threshold / "Reaches" / "Touches" Markets

These are the most common source of resolution disputes. If your market asks whether a value will reach, touch, exceed, or fall below a threshold, be extra explicit.

* **Correct:** "Yes if ZRO trades ≥ $2 on the chosen source at any point between 2026-04-18 11:44 UTC (creation) and 2026-04-20 23:59 UTC (expiry)."
* **Ambiguous:** "Yes if ZRO reaches $2 on or before 2026-04-20." (No start time — a token that hit $2 in March would trigger a false Yes.)

## Monetization

<table><thead><tr><th width="256">Source</th><th>How It Works</th></tr></thead><tbody><tr><td>Creator fees</td><td>0–2% of all volume in your markets</td></tr><tr><td>Market-creation LP</td><td>LP equal to your seed amount, 2× if Boosted</td></tr><tr><td>LP from trading</td><td>Points from your own trading → monthly pool share</td></tr><tr><td>Referral rewards</td><td>Bonus LP + cash when your followers trade</td></tr><tr><td>Rebalancing <em>(coming soon)</em></td><td>Swap your seed-inventory shares between outcomes to defend against stale-position risk</td></tr></tbody></table>

## FAQ

<details>

<summary>Can I withdraw my initial liquidity?</summary>

Not via rebalancing — rebalancing swaps your share inventory between outcomes but keeps the total value inside the market. To pull capital out before resolution, sell your shares back to the market like any trader. After resolution, your winning shares redeem at \~$1.00 each along with any unclaimed creator fees.

</details>

<details>

<summary>Can I trade in my own markets?</summary>

Yes. As a trader, you earn LP like anyone else. Creator fees and trading profits are separate.

</details>

<details>

<summary>What if my resolution rules are ambiguous?</summary>

Ambiguous rules are usually caught and rejected during Pending review. If they slip through and the market can't be resolved to any listed outcome, the market resolves as **Void** — all stakes are returned. Write tight rules to avoid this.

</details>


---

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