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Smart Contracts

What is a smart contract and how does BetDEX use them?
A smart contract allows buyers and sellers, or backers and layers in the case of BetDEX, to trade with one another through a self-executing program on a blockchain. The terms of the agreement, or the rules of sports betting markets in our case, are written directly into the code. Smart contracts mean that BetDEX never holds custody of user funds when they have been committed to a market on the exchange.
The smart contracts on the Monaco Protocol allow users to place orders on sports betting markets at the odds supported and these orders will be programmatically matched with one another in FIFO (first in, first out), best price execution manner. This means that back orders will be matched using the highest available odds and lay orders will be matched at the lowest available odds. Orders that were placed first are first to be matched. Newer orders that are eligible to be matched are matched once older, pre-existing orders have been matched.
Settlement of the market or smart contract takes place once the result of the market is known. This is currently executed by the BetDEX Operations team but Oracles will be used to do this in the future. Once a smart contract or market has settled all funds from winning trades are instantly sent to the wallet that made the order.