Financial Literacy & Trading Guide

Learn how AfriWager works, understand the mechanics of prediction markets, and discover how to trade safely.

How It Works

AfriWager is a decentralized prediction market. You buy "YES" or "NO" shares for a specific question based on real-world events. Each share is priced between $0.01 and $1.00 based on the market's belief that the event will happen.

  • If "YES" costs $0.70, the market thinks there is a 70% chance of the event occurring.
  • If your prediction is correct when the market resolves, your shares become worth $1.00 each.
  • If your prediction is wrong, your shares become worth $0.00.

Trading Mechanics

You don't have to hold your shares until the event ends. As news breaks, the probability (and the price of shares) fluctuates.

  • Lock in Profits: Sell your shares early if the price goes up.
  • Cut Losses: Sell early if you realize you made a mistake.
  • Liquidity: AfriWager uses USDC (digital dollars) to ensure deep liquidity across all markets.

Risk Management & Reality

Prediction markets are highly competitive financial environments. "Having an opinion" is rarely enough to be profitable over the long term. Edge comes from analyzing data and calculating probabilities faster than the crowd.

Information Asymmetry

You are trading against sophisticated participants who follow the news closely. Always do your own research before deploying capital.

Only Risk What You Can Lose

Never trade with money you need for daily living. There is no "house" to protect you from bad trades. Use small amounts to learn the platform first.

The Oracle (Resolution)

Every market on AfriWager has a strict set of rules and an officially designated "Oracle" (e.g., The Central Bank of Kenya website). When the deadline hits, the Oracle is checked. If the event occurred exactly as described in the rules, the market resolves to YES. If not, it resolves to NO.

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