Glossary
Prediction market and Midnight Network terms defined in one place.
Accuracy Score
A value between 0 and 1 that measures how close a prediction is to the actual outcome. Calculated as max(0, 1 − (distance / maxError)). A perfect prediction scores 1.0; predictions beyond the maxError boundary score 0.
Basis Points (bps)
A unit of measure for percentages. 1 basis point = 0.01%. Precizion's platform fee is 200 bps (2%).
Compact
The smart contract language used on Midnight Network. Compact compiles to zero-knowledge circuits, enabling privacy-preserving on-chain logic.
Continuous Outcome
A prediction market where participants predict a specific numeric value (not binary yes/no). Precizion uses continuous outcomes for all markets.
DUST
Small amounts of NIGHT tokens needed to initialize contracts on Midnight Network. Typically 3-5 DUST coins are required for deployment.
Factory Contract
A registry contract that tracks all deployed market contracts. Provides market discovery and sequential ID assignment.
Inverse Distance
The core weighting mechanism in Precizion's reward formula. Closer predictions receive exponentially higher weights, creating a smooth accuracy gradient.
Ledger
The on-chain state of a smart contract. In Compact, ledger fields store the contract's persistent data (pool amounts, bet maps, market status, etc.).
MaxError
The maximum allowed error (as a percentage of the actual outcome) for a prediction to receive any reward. Default: 50%. Predictions beyond this boundary receive zero accuracy.
Merke Leaf
A hash commitment in a Merkle tree. In Precizion, each leaf is computed as keccak256(distributionId ‖ userPk ‖ rewardAmount), committing to a specific reward for a specific user.
Merkle Proof
A cryptographic proof that a specific leaf exists in a Merkle tree without revealing other leaves. Used by participants to claim their rewards on-chain.
Merkle Tree
A binary hash tree where each leaf is a hash of data and each non-leaf node is a hash of its children. Used in Precizion to commit to reward distributions efficiently.
Midnight Network
A privacy-first blockchain platform that uses zero-knowledge proofs. Precizion is built on Midnight for shielded predictions and private reward claims.
NIGHT
The native token of the Midnight Network. Used for staking bets, paying transaction fees, and receiving rewards on Precizion.
Oracle
An external data source that provides real-world information to smart contracts. Precizion uses price oracles (Binance, Bybit) to resolve price-based markets.
Pool
The total amount of NIGHT tokens staked by all participants in a market. After a 2% platform fee, the remaining pool is distributed as rewards.
Prediction
A numeric value submitted by a participant in a market. Predictions are shielded (private) and compared against the actual outcome to determine rewards.
Proof Server
A service that generates zero-knowledge proofs for transactions. Required for the Midnight wallet to create valid proofs for bet placement and reward claims.
Reward Distribution
The process of computing and distributing rewards after market resolution. Uses a Merkle tree to commit to rewards, allowing efficient on-chain claims.
Selective Disclosure
A privacy feature where users can choose to reveal specific information without exposing everything. Core to Midnight Network's privacy model.
Shielded Address
A private wallet address on Midnight Network that hides the holder's identity and transaction history. Used by Midnight wallets for private interactions.
Unshielded
Public (non-private) transactions or addresses on Midnight Network. Market creation and resolution are unshielded operations.
Weighted Accuracy
The product of a participant's accuracy score and their bet amount. Used to calculate each participant's share of the reward pool.
Zero-Knowledge Proof (ZK Proof)
A cryptographic proof that demonstrates a statement is true without revealing any underlying data. Used throughout Precizion for private bets and reward claims.