> For the complete documentation index, see [llms.txt](https://docs.xft.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xft.finance/learn/smart-contract-repo-setup/prediction-mkt-repo.md).

# Prediction Mkt Repo

PATH:  <mark style="color:red;">C:\XFT\prediction-mkts\prod</mark>

<mark style="color:purple;">COUNTERPARTIES</mark>\ <mark style="color:red;">contracts/XFTConditionalTokens.sol</mark> [0x786Bc48C7ef3E9AA811068Fb4b0eC0DC01028740](https://sepolia.arbiscan.io/address/0x786bc48c7ef3e9aa811068fb4b0ec0dc01028740)\
contracts/XFTPredictionMktFacility.sol&#x20;

USDXT [0xC1BF9854E43b84f3abec5f5d1C72F0a6f602034b](https://sepolia.arbiscan.io/address/0xC1BF9854E43b84f3abec5f5d1C72F0a6f602034b)\
USDX [0x4F1D5c7221dB8F3F28b2F0398Aa2bc321b72C523](https://sepolia.arbiscan.io/address/0x4F1D5c7221dB8F3F28b2F0398Aa2bc321b72C523)

***

### HARDHAT PROJECT SETUP

npm init -y\
npm i -D hardhat @nomicfoundation/hardhat-toolbox dotenv\
npx hardhat --init

```powershell
PS C:\XFT\prediction-mkts\prod> npx hardhat --init

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👷 Welcome to Hardhat v3.0.4 👷

√ Which version of Hardhat would you like to use? · hardhat-2
√ Where would you like to initialize the project?

Please provide either a relative or an absolute path: · .
√ What type of project would you like to initialize? · empty-hardhat-config-js
✨ Template files copied ✨
√ You need to update the following dependencies using the following command:
npm install --save-dev "hardhat@^2.14.0"

Do you want to run it now? (Y/n) · true

npm install --save-dev "hardhat@^2.14.0"

added 75 packages, removed 22 packages, changed 16 packages, and audited 593 packages in 8s

117 packages are looking for funding
  run `npm fund` for details

15 low severity vulnerabilities

To address issues that do not require attention, run:
  npm audit fix

Some issues need review, and may require choosing
a different dependency.

Run `npm audit` for details.
✨ Dependencies updated ✨
Give Hardhat a star on Github if you're enjoying it! ⭐️✨

     https://github.com/NomicFoundation/hardhat
PS C:\XFT\prediction-mkts\prod>
```

mkdir scripts\
mkdir contracts\
cd contracts\
touch XFTConditionalTokens.sol\
npx hardhat clean\
npx hardhat compile

***

### XFTConditionalTokens.sol

Path: <mark style="color:red;">contracts/XFTConditionalTokens.sol</mark>

```
[{"anonymous":false,"inputs":[{"indexed":true,"internalType":"address","name":"owner","type":"address"},{"indexed":true,"internalType":"address","name":"operator","type":"address"},{"indexed":false,"internalType":"bool","name":"approved","type":"bool"}],"name":"ApprovalForAll","type":"event"},{"anonymous":false,"inputs":[{"indexed":true,"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"indexed":true,"internalType":"address","name":"oracle","type":"address"},{"indexed":true,"internalType":"bytes32","name":"questionId","type":"bytes32"},{"indexed":false,"internalType":"uint256","name":"outcomeSlotCount","type":"uint256"}],"name":"ConditionPreparation","type":"event"},{"anonymous":false,"inputs":[{"indexed":true,"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"indexed":true,"internalType":"address","name":"oracle","type":"address"},{"indexed":true,"internalType":"bytes32","name":"questionId","type":"bytes32"},{"indexed":false,"internalType":"uint256","name":"outcomeSlotCount","type":"uint256"},{"indexed":false,"internalType":"uint256[]","name":"payoutNumerators","type":"uint256[]"}],"name":"ConditionResolution","type":"event"},{"anonymous":false,"inputs":[{"indexed":true,"internalType":"address","name":"redeemer","type":"address"},{"indexed":true,"internalType":"contract IERC20","name":"collateralToken","type":"address"},{"indexed":true,"internalType":"bytes32","name":"parentCollectionId","type":"bytes32"},{"indexed":false,"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"indexed":false,"internalType":"uint256[]","name":"indexSets","type":"uint256[]"},{"indexed":false,"internalType":"uint256","name":"payout","type":"uint256"}],"name":"PayoutRedemption","type":"event"},{"anonymous":false,"inputs":[{"indexed":true,"internalType":"address","name":"stakeholder","type":"address"},{"indexed":false,"internalType":"contract IERC20","name":"collateralToken","type":"address"},{"indexed":true,"internalType":"bytes32","name":"parentCollectionId","type":"bytes32"},{"indexed":true,"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"indexed":false,"internalType":"uint256[]","name":"partition","type":"uint256[]"},{"indexed":false,"internalType":"uint256","name":"amount","type":"uint256"}],"name":"PositionSplit","type":"event"},{"anonymous":false,"inputs":[{"indexed":true,"internalType":"address","name":"stakeholder","type":"address"},{"indexed":false,"internalType":"contract IERC20","name":"collateralToken","type":"address"},{"indexed":true,"internalType":"bytes32","name":"parentCollectionId","type":"bytes32"},{"indexed":true,"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"indexed":false,"internalType":"uint256[]","name":"partition","type":"uint256[]"},{"indexed":false,"internalType":"uint256","name":"amount","type":"uint256"}],"name":"PositionsMerge","type":"event"},{"anonymous":false,"inputs":[{"indexed":true,"internalType":"address","name":"operator","type":"address"},{"indexed":true,"internalType":"address","name":"from","type":"address"},{"indexed":true,"internalType":"address","name":"to","type":"address"},{"indexed":false,"internalType":"uint256[]","name":"ids","type":"uint256[]"},{"indexed":false,"internalType":"uint256[]","name":"values","type":"uint256[]"}],"name":"TransferBatch","type":"event"},{"anonymous":false,"inputs":[{"indexed":true,"internalType":"address","name":"operator","type":"address"},{"indexed":true,"internalType":"address","name":"from","type":"address"},{"indexed":true,"internalType":"address","name":"to","type":"address"},{"indexed":false,"internalType":"uint256","name":"id","type":"uint256"},{"indexed":false,"internalType":"uint256","name":"value","type":"uint256"}],"name":"TransferSingle","type":"event"},{"anonymous":false,"inputs":[{"indexed":false,"internalType":"string","name":"value","type":"string"},{"indexed":true,"internalType":"uint256","name":"id","type":"uint256"}],"name":"URI","type":"event"},{"constant":true,"inputs":[{"internalType":"address","name":"owner","type":"address"},{"internalType":"uint256","name":"id","type":"uint256"}],"name":"balanceOf","outputs":[{"internalType":"uint256","name":"","type":"uint256"}],"payable":false,"stateMutability":"view","type":"function"},{"constant":true,"inputs":[{"internalType":"address[]","name":"owners","type":"address[]"},{"internalType":"uint256[]","name":"ids","type":"uint256[]"}],"name":"balanceOfBatch","outputs":[{"internalType":"uint256[]","name":"","type":"uint256[]"}],"payable":false,"stateMutability":"view","type":"function"},{"constant":true,"inputs":[{"internalType":"bytes32","name":"parentCollectionId","type":"bytes32"},{"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"internalType":"uint256","name":"indexSet","type":"uint256"}],"name":"getCollectionId","outputs":[{"internalType":"bytes32","name":"","type":"bytes32"}],"payable":false,"stateMutability":"view","type":"function"},{"constant":true,"inputs":[{"internalType":"address","name":"oracle","type":"address"},{"internalType":"bytes32","name":"questionId","type":"bytes32"},{"internalType":"uint256","name":"outcomeSlotCount","type":"uint256"}],"name":"getConditionId","outputs":[{"internalType":"bytes32","name":"","type":"bytes32"}],"payable":false,"stateMutability":"pure","type":"function"},{"constant":true,"inputs":[{"internalType":"bytes32","name":"conditionId","type":"bytes32"}],"name":"getOutcomeSlotCount","outputs":[{"internalType":"uint256","name":"","type":"uint256"}],"payable":false,"stateMutability":"view","type":"function"},{"constant":true,"inputs":[{"internalType":"contract IERC20","name":"collateralToken","type":"address"},{"internalType":"bytes32","name":"collectionId","type":"bytes32"}],"name":"getPositionId","outputs":[{"internalType":"uint256","name":"","type":"uint256"}],"payable":false,"stateMutability":"pure","type":"function"},{"constant":true,"inputs":[{"internalType":"address","name":"owner","type":"address"},{"internalType":"address","name":"operator","type":"address"}],"name":"isApprovedForAll","outputs":[{"internalType":"bool","name":"","type":"bool"}],"payable":false,"stateMutability":"view","type":"function"},{"constant":false,"inputs":[{"internalType":"contract IERC20","name":"collateralToken","type":"address"},{"internalType":"bytes32","name":"parentCollectionId","type":"bytes32"},{"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"internalType":"uint256[]","name":"partition","type":"uint256[]"},{"internalType":"uint256","name":"amount","type":"uint256"}],"name":"mergePositions","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":true,"inputs":[{"internalType":"bytes32","name":"","type":"bytes32"}],"name":"payoutDenominator","outputs":[{"internalType":"uint256","name":"","type":"uint256"}],"payable":false,"stateMutability":"view","type":"function"},{"constant":true,"inputs":[{"internalType":"bytes32","name":"","type":"bytes32"},{"internalType":"uint256","name":"","type":"uint256"}],"name":"payoutNumerators","outputs":[{"internalType":"uint256","name":"","type":"uint256"}],"payable":false,"stateMutability":"view","type":"function"},{"constant":false,"inputs":[{"internalType":"address","name":"oracle","type":"address"},{"internalType":"bytes32","name":"questionId","type":"bytes32"},{"internalType":"uint256","name":"outcomeSlotCount","type":"uint256"}],"name":"prepareCondition","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":false,"inputs":[{"internalType":"contract IERC20","name":"collateralToken","type":"address"},{"internalType":"bytes32","name":"parentCollectionId","type":"bytes32"},{"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"internalType":"uint256[]","name":"indexSets","type":"uint256[]"}],"name":"redeemPositions","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":false,"inputs":[{"internalType":"bytes32","name":"questionId","type":"bytes32"},{"internalType":"uint256[]","name":"payouts","type":"uint256[]"}],"name":"reportPayouts","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":false,"inputs":[{"internalType":"address","name":"from","type":"address"},{"internalType":"address","name":"to","type":"address"},{"internalType":"uint256[]","name":"ids","type":"uint256[]"},{"internalType":"uint256[]","name":"values","type":"uint256[]"},{"internalType":"bytes","name":"data","type":"bytes"}],"name":"safeBatchTransferFrom","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":false,"inputs":[{"internalType":"address","name":"from","type":"address"},{"internalType":"address","name":"to","type":"address"},{"internalType":"uint256","name":"id","type":"uint256"},{"internalType":"uint256","name":"value","type":"uint256"},{"internalType":"bytes","name":"data","type":"bytes"}],"name":"safeTransferFrom","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":false,"inputs":[{"internalType":"address","name":"operator","type":"address"},{"internalType":"bool","name":"approved","type":"bool"}],"name":"setApprovalForAll","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":false,"inputs":[{"internalType":"contract IERC20","name":"collateralToken","type":"address"},{"internalType":"bytes32","name":"parentCollectionId","type":"bytes32"},{"internalType":"bytes32","name":"conditionId","type":"bytes32"},{"internalType":"uint256[]","name":"partition","type":"uint256[]"},{"internalType":"uint256","name":"amount","type":"uint256"}],"name":"splitPosition","outputs":[],"payable":false,"stateMutability":"nonpayable","type":"function"},{"constant":true,"inputs":[{"internalType":"bytes4","name":"interfaceId","type":"bytes4"}],"name":"supportsInterface","outputs":[{"internalType":"bool","name":"","type":"bool"}],"payable":false,"stateMutability":"view","type":"function"}]
```

***

Yes—deploy **ConditionalTokens.sol** as-is (0.5.x). Use it unchanged; wire your facility + oracle around it. Collateral: **USDXT**.

contracts /scripts/\
contracts/ConditionalTokens.sol\
contracts/XFTPredictionMktFacility.sol\
contracts/XFTTrustedOracle.sol\
scripts/deploy-conditional-tokens.js\
scripts/deploy-xft-trusted-oracle.js\
scripts/deploy-xft-facility.js\
scripts/create-market.js

```
Deployment Flow (Arbitrum Sepolia, USDXT)
1 Set .env RPC + PRIVATE_KEY
2 Choose USDXT address on Arbitrum Sepolia
3 npx hardhat compile (solc 0.5.13 for CT; facility/oracle can be 0.8.x or also 0.5.x)
4 Deploy ConditionalTokens -> get CT address
5 Deploy XFTTrustedOracle -> get ORACLE address
6 Deploy XFTPredictionMktFacility(CT, USDXT, treasury, ORACLE, feeBps)
7 In facility.createMarket(questionId, outcomeSlots=2, open, cutoff, uri)
8 Facility calls CT.prepareCondition(oracle=ORACLE, questionId, 2)
9 Save marketId, conditionId; publish addresses/IDs
10 For demo: ORACLE.setOutcome(questionId, YES/NO) then facility.resolveFromOracle(marketId)
```

<mark style="color:purple;">Hardhat setup</mark>

```
npm init -y
npm i -D hardhat @nomicfoundation/hardhat-toolbox dotenv
npx hardhat

npm i hardhat axios tsx 
```

Build & deploy cmds

```
npx hardhat compile
npx hardhat run scripts/deploy-conditional-tokens.js --network sepolia
npx hardhat run scripts/deploy-xft-trusted-oracle.js --network sepolia
npx hardhat run scripts/deploy-xft-facility.js --network sepolia
npx hardhat run scripts/create-market.js --network sepolia
```

Notes (least words)

* ConditionalTokens stays unmodified; it mints/burns positions and escrows USDXT via split/merge/redeem.
* XFTPredictionMktFacility: wraps CT (depositAndMint, merge, redeem, lock, resolveFromOracle, withdrawFees).
* XFTTrustedOracle: demo truth source; later swap to UMA adapter with same surface.
* Ensure hardhat.config has a 0.5.13 compiler entry for CT (and another for 0.8.x if used).