> For the complete documentation index, see [llms.txt](https://pudu-1.gitbook.io/pudu_docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pudu-1.gitbook.io/pudu_docs/pudu-system/pool-mechanisms.md).

# Pool mechanisms

## Step by Step guide of PuDu's mechanisms

### Step 1

Upon entering PuDu's Dapp, the user connects their wallet. This connection grants the user access to all the current bets available for them to participate in.

{% hint style="info" %}
PuDu will never request the creation of a wallet or the storage of your private keys. Additionally, there is no requirement to deposit your assets on the platform at any point; you retain custody of your funds throughout the entire process until you decide to place a bet.
{% endhint %}

### Step 2

The user selects an asset from the whitelisted assets and specifies the desired timeframe for the bet. 

In the V0 version, two timeframes—12 hours or 24 hours—will be available for each asset.

Following this, the user inputs the desired bet amount, confirms, and the bet is placed.

### Step 3

Finally, all the bets are placed and the pool closes. At the time the pool closes, the smart contract register the settlement price of the asset. It is the reference price for the bet.

### Step 4

After 12 or 24 hours, the bet concludes. The smart contract records the price of the asset at this precise moment, which serves as the final price. 

If the final price surpasses the settlement price, the Pump team emerges as the winner.

Conversely, if the final price falls below the settlement price, the Dump team claims victory.

Winners can then claim their tokens (minus the fee), completing the process.

## Token pricing

Ensuring a seamless and secure user experience underscores the importance of careful consideration in determining the pricing of tokens for both the settlement price and the final price.

The primary choice is consistently utilizing price feeds from reputable oracles like Chainlink and Diadata.

For more exotic tokens lacking price data on oracles, PuDu will obtain the asset's price directly from the Uniswap pool. 

PuDu is dedicated to being the most decentralized price prediction market, and this approach aligns with that commitment.