Core Architecture

The core architecture of IOTrader is built as a modular and composable set of smart contract systems designed to handle perpetual trading, prediction outcome markets, leverage logic, and settlement finality — all on-chain and without custodial risk. Instead of building a monolithic protocol, IOTrader is a layered architecture where each component is independent and upgradeable, allowing the system to evolve, scale and integrate new features without disrupting existing markets or user positions.

At the foundation sits the Market Creation Layer, a permissionless module that enables anyone to create a new future outcome market. Each market is deployed as a smart contract instance that holds its own state, liquidity, logic and oracle references. This allows thousands of markets to operate in parallel without affecting network performance or settlement timelines. Community-driven growth becomes a native part of the protocol itself.

Above that sits the Pricing & Liquidity Layer, which handles capital routing, automated liquidity pools, and hybrid orderbook logic. By combining both AMM mechanics and orderbook depth, IOTrader can support early price discovery in low-liquidity markets as well as institutional-grade execution in high-volume markets. This dual-structure makes markets efficient at every stage — from early speculation to large-scale leverage trading.

Next is the Risk & Leverage Engine, the component responsible for margin handling, position management, real-time funding rates, liquidation triggers, and collateral calculations. This engine treats outcome exposure just like perpetual futures exposure — but linked to event-referenced outcomes rather than raw asset prices. This transforms future scenarios into natively margin-tradable assets that operate under the same economic logic as professional derivatives.

Finally, the Settlement & Oracle Layer ensures every outcome is resolved trustlessly. IOTrader integrates multiple oracle frameworks so different types of markets use the most suitable data source — price feeds, on-chain state, trusted event data, or multi-party attestation networks. Once the event outcome is verified, settlement is enforced automatically on-chain. This architecture makes IOTrader not just a trading platform, but a decentralized infrastructure layer where future outcomes become programmable, tradable, and financially composable across the entire DeFi ecosystem.