Siprifi Prediction Market MVP – Architecture Review & Roadmap

Document Version: 1.0 Date: 2026-01-15 Status: MVP Technical Architecture (Pre-Lending Phase)

graph TB
    subgraph "User Layer"
        USER[User / Trader]
        WALLET["EOA Wallet\n(MetaMask, Rabby)"]
    end

    subgraph "Frontend Layer"
        UI[Minimal Web UI]
        MARKET_LIST[Market List]
        MARKET_VIEW[Market Detail]
        CLAIM_UI[Claim Rewards UI]
    end

    subgraph "Ethereum / EVM"
        PM[PredictionMarketV2]
        YES[YES MarketToken]
        NO[NO MarketToken]
    end

    USER --> WALLET
    WALLET --> UI

    UI --> MARKET_LIST
    UI --> MARKET_VIEW
    UI --> CLAIM_UI

    UI -->|createMarket| PM
    UI -->|buyYesShares| PM
    UI -->|resolveMarket| PM
    UI -->|claimReward| PM

    PM -->|deploys| YES
    PM -->|deploys| NO

    style PM fill:#4CAF50
    style YES fill:#2196F3
    style NO fill:#F44336

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Architectural Intent

This MVP implements the risk tokenization layer of Siprifi Finance.

• Each prediction market is isolated
• Risk is expressed as ERC20 YES / NO tokens
• ETH is escrowed per market
• No AMM, oracle, or lending logic is included

This is a foundational primitive, not the full Siprifi protocol.

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2. Core Contracts Overview

Contract	Responsibility	Status
PredictionMarketV2.sol	Market lifecycle, escrow, resolution, payout	Implemented
MarketToken.sol	ERC20 YES / NO outcome tokens	Implemented

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3. PredictionMarketV2 – Contract Architecture

graph TB
    CREATE[createMarket]
    BUY[buyYesShares]
    RESOLVE[resolveMarket]
    CLAIM[claimReward]

    CREATE --> TOKENS[Deploy YES/NO Tokens]
    BUY --> MINT_YES[Mint YES → Buyer]
    BUY --> MINT_NO[Mint NO → Market Owner]
    BUY --> ESCROW[ETH Escrowed in Contract]

    RESOLVE --> OUTCOME[Outcome Stored]

    CLAIM --> BURN[Burn Winning Tokens]
    CLAIM --> PAYOUT[ETH Payout]

    style ESCROW fill:#FF9800
    style PAYOUT fill:#4CAF50

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4. Market Lifecycle (MVP)

sequenceDiagram
    participant User
    participant UI
    participant PM as PredictionMarketV2
    participant Token as MarketToken

    User->>UI: Create Market (question, deadline)
    UI->>PM: createMarket()
    PM->>Token: Deploy YES token
    PM->>Token: Deploy NO token
    PM-->>UI: MarketCreated

    User->>UI: Buy YES shares (ETH)
    UI->>PM: buyYesShares()
    PM->>Token: mint YES to user
    PM->>Token: mint NO to owner

    Note over PM: ETH locked as escrow

    User->>UI: (After deadline) Resolve market
    UI->>PM: resolveMarket(outcome)

    User->>UI: Claim reward
    UI->>PM: claimReward()
    PM->>Token: burn winning tokens
    PM->>User: Transfer ETH payout

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5. Economic Model (Current MVP)

5.1 Share Minting Logic

Action	Result
Buy YES with X ETH	YES: X minted to buyer
	NO: X minted to market owner
	ETH locked in escrow

Assumptions:

• Fixed 1:1 pricing
• No dynamic probability
• No liquidity curve

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5.2 Payout Formula

payout = (marketEscrowETH × userWinningBalance) / totalWinningSupply

Properties:

• Zero-sum per market
• Proportional distribution
• Deterministic

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6. Trust & Security Model (Explicit MVP Assumptions)

6.1 Trust Assumptions

Component	Trust Model
Market Resolution	Fully trusted owner
Pricing	Fixed mint ratio
Oracle	None
Governance	None

These assumptions are intentional for MVP speed.

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6.2 Known Security Gaps

Risk	Description
Centralized resolution	Owner can resolve dishonestly
No reentrancy guard	claimReward vulnerable
Shared ETH balance	Needs per-market escrow mapping
No pause mechanism	Cannot halt in emergencies
No dispute window	Resolution is final

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7. Code Status Summary

Implemented ✅

• Market creation
• ERC20 YES / NO tokens
• ETH escrow
• Outcome resolution
• Proportional payout

Not Implemented ❌ (By Design)

• AMM pricing
• Oracle resolution
• Secondary trading
• Lending / collateral logic
• Liquidation

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8. Planned Short-Term Improvements (V1)

Priority	Feature	Description
🔴 High	Per-market escrow	Prevent cross-market leakage
🔴 High	ReentrancyGuard	Secure reward claims
🟡 Medium	Permissioned resolver	Multisig / DAO
🟡 Medium	Dispute window	Challenge resolution
🟢 Low	Market fees	Protocol revenue

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9. Siprifi Finance Integration Roadmap

Phase 0 – Current (This Repo)

• Risk tokenization
• Binary outcome tokens
• ETH-settled markets

Phase 1 – Collateral Acceptance

• YES / NO tokens whitelisted
• Oracle-based pricing
• LTV parameters
• Deposit-only lending

Phase 2 – Risk Engine

• Concentration limits
• Correlated market groups
• Borrowing power offsets

Phase 3 – Full Protocol

• Permissionless markets
• DAO governance
• Safety module
• Cross-market liquidity

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10. How This MVP Fits the Whitepaper

Whitepaper Concept	MVP Status
Outcome shares	✅ Implemented
ERC20 collateral	✅ Implemented
Capital efficiency	❌ Not yet
Lending	❌ Future
Risk engine	❌ Future

This MVP validates the atomic unit of Siprifi risk.

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11. Deployment Notes

• Target: Testnet only
• Solidity: ^0.8.24
• No audits
• No upgradeability

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12. Disclaimer

This code is experimental and unaudited.

• No financial guarantees
• No oracle protections
• Use for research and prototyping only

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© 2026 Siprifi Finance – Internal MVP Architecture Document