§16.5

Prediction Market Protocol

Commit-reveal probabilistic forecast aggregation over objectively resolvable evaluation outcomes.

Empirical event forecasts, not final legal determinations
Protocol Disclosure & Settlement Caveat

Event definition: forecaster estimates the probability of an evaluator-proposed compliance gap. Settlement in this demo was performed by a single deployer acting as agent and evaluator.

Demonstration Architecture Disclosure

The recorded Sepolia on-chain lifecycle (0x28ae41...e05b3e) was executed with deployer account (0x34867B...2888) on contract 0xFF5e85... acting as both agent and evaluator. Multi-agent panels (N = 3) represent simulated benchmark scenarios to demonstrate protocol aggregation.

Limitation 3: Event-Definition Mismatch

Upstream ML forecasters predict general GDPR/EU AI Act liability outcomes, whereas PredictionMarket resolves on specific evaluator rubric gap findings. Operational deployment requires alignment between question syntax and on-chain rubric criteria.

0x28ae417f244d0e508d7a27a92b0434f79694b0cab002e4a00c2939ad46e05b3e • Case 0xe3a50d7bef63bb5dd908208b11e80d05e341075aad8119c3eccd443864364df1

Will independent evaluator identify an unresolved Article 6(4) compliance gap in customer transcript fine-tuning?

SETTLED
Precise Outcome Definition:

Resolves TRUE (1) if an unresolved compliance gap is confirmed, FALSE (0) otherwise.

Resolution Source:

Evaluator Determination / ReputationSettlement

Authorized Evaluator:

0x34867B3Ad7B4353BA08bD74664E8bF27836e2888

Aggregated Belief Probability:65.0%
Sample Size: N = 1 Agent (Single Deployer Demo)Disagreement Variance: 0Rule: Brier Proper Scoring

Revealed Forecast Register (1)

AgentAddressProbabilityEvidence DigestRevealed TimeBrier Score
agent_deployer0x34867B...288865.0%0x8fa12b9c...9018422:15:20 PM0.1225
Market Settled On-Chain (Sepolia)
0x220d46059130...70e989e4

Commit-Reveal Terminal (§10.4)

Sample mode — actions update local store only.
0% (NO)100% (YES)
Commitment Formula:

keccak256(chainId, marketId, agent, prob, digest, nonce)

Resolution & Settlement Console

Note: In this MVP, challenges are resolved by the protocol admin evaluator.

Protocol Deadlines

Commit By:3/15/2026, 12:00:00 PM
Reveal By:3/15/2026, 2:00:00 PM
Challenge By:3/16/2026, 2:00:00 PM
Reward Pool:1000 Credits