In prediction markets, Market Creators play a crucial role in establishing and maintaining the markets. A Market Creator is an entity or individual responsible for initiating a prediction market by defining the terms of the market including fees, dates, setting the denominated market currency (token) and promoting the market to ensure the highest liquidity flow to the market.
Here's a breakdown of the key responsibilities and characteristics of Market Creators:
Initiating Markets: Market creators are the ones who propose and create markets by specifying the event or outcome they want to be predicted.
Setting Market Terms: Market Creators define the terms of the contracts traded in the market. This includes specifying the possible outcomes, their corresponding probabilities and allowed tokens that an be used to participate in the market.
Providing Liquidity: Although Market creators won't need to contribute any initial amount of liquidity to the market by placing initial bets, this will help kickstart trading in the market.
Earning Fees: Market creators earn fees for their role in establishing and maintaining the market. These fees will be a commission on participants' profits.
Market Monitoring: Market creators monitor the market to ensure that it reflects the most up-to-date information.
Adjusting Market Parameters: Depending on the rules of the prediction market platform, market creators will have the authority to adjust certain, non-crticial parameters such as description or the source of verificaiton of the makret. Most parameters can't be changed once the contract is deployed to the blockchain.