Guide · Build vs buy
Build or buy a
prediction market?
Many brokers start by asking what it would take to build their own prediction market exchange. It's the right question. This guide lists what an in-house build involves, component by component, and the signals that point to building or buying.
01What a prediction market exchange is made of
Matching engine
A central limit order book with price-time priority, order types and time-in-force rules, amend and cancel, self-trade prevention and pre-trade risk limits. It has to stay correct under load and stay up: TIE's engine runs under a contractual 99.9% uptime SLA.
Collateral, positions and settlement
Full collateralisation at order entry, position tracking, YES/NO merging to release capital, and payouts when markets resolve, all reconciled to the cent.
Events, resolution and oracle
Someone has to write the rules for every market, pick settlement sources, resolve outcomes, handle voids and disputes, and run recurring series around the clock.
Market data and APIs
Book snapshots and diffs, trades, order and accounting streams with sequencing and replay, a REST API for your own apps, and documentation for your engineers.
Liquidity
Market makers who will quote a new venue, contracts with them, and the tooling they need. See prediction market liquidity.
Licensing and compliance
A licensing position in each jurisdiction you serve, plus the policies, reporting and legal review that come with it.
Operations
24/7 monitoring, incident response, market operations and support, from day one.
02Side by side
| Build in-house | White label on TIE | |
|---|---|---|
| Matching engine | Design, build, test and operate | Proprietary CLOB, 99.9% contractual SLA |
| Settlement and oracle | Build and staff | Included |
| Catalogue | Source and resolve every market | Polymarket catalogue, crypto series and custom events |
| Liquidity | Recruit market makers for a new venue | Partner quoting from launch, 24/7 desk |
| Licensing | Apply per jurisdiction | Wrapper under licensed entities in Mauritius and Costa Rica |
| Fixed cost before first trade | Engineering, infrastructure, legal, operations | $0 setup, $0 monthly platform fee |
| Time to market | Months to years | Sandbox in one business day, live in weeks |
| Control | Every layer | Your brand, UX, clients and pricing; TIE runs the rails |
03When building makes sense
- Event contracts are your core business, not an extra instrument.
- You need control of matching and settlement for strategic or regulatory reasons.
- You already have an exchange-grade engineering and operations team, and liquidity relationships.
- You're prepared to carry fixed costs for months or years before revenue.
04When a white label makes sense
- You have clients and distribution, and want a new instrument for them.
- You want to test demand before committing a team to it.
- Your target markets are in Latin America, Asia-Pacific, Africa or the Middle East, where TIE's wrapper applies.
- You'd rather pay per executed trade than carry fixed cost.
A white label doesn't close the door on building later. Many brokers launch on one to learn what their clients trade, then decide with real data.
05Questions to answer before deciding
- Which jurisdictions will you serve, and what licensing position do you already have?
- Which events do your clients want: macro, crypto, elections, sports, or local topics?
- Who will quote your books on day one?
- How quickly do you need to launch, and what's the cost of waiting?
- What's the minimum volume at which an in-house build pays back?
A 30-minute scoping call with TIE covers jurisdictions, catalogue, fees and a launch plan with dates, which gives you the "buy" side of the comparison in concrete numbers.
06FAQ
How long does it take to build a prediction market exchange?
An in-house build spans the matching engine, settlement, oracle and event operations, market data, liquidity and licensing, which typically takes months to years. On TIE, sandbox access takes one business day and brokers go live in weeks.
What does a white-label prediction market cost?
On TIE, setup, integration and the monthly platform fee are $0. TIE earns an execution fee on executed trades only, and you keep 100% of your client commission.
Can we keep our own brand with a white label?
Yes. Your clients see only your product. TIE runs matching, collateral, settlement and oracle resolution behind it.
Can we start with a white label and build later?
Yes. A white label lets you learn what your clients trade before committing to a build.
Want the buy side in numbers? Request a sandbox key and we'll reply within one business day with access and integration notes.