Intellistake to build software for Prospect Prediction

Executive Summary

• Intellistake Technologies Corp. entered into a development and platform agreement with Prospect Prediction Markets Inc. to build "Gravity," a liquidity management system for prediction markets.
• The total contract value is C$1,573,000 (approximately $1.15 million USD), comprising $550,000 USD for development stages and a $600,000 USD, 24-month licensing fee.
• $1 million USD of the consideration is expected to be paid via the issuance of shares in Prospect Markets, subject to stock exchange approval.

Key Details

• Agreement Parties: Intellistake Technologies Corp. (Developer) and Prospect Prediction Markets Inc. (Client).
• Project Name: "Gravity," a modular liquidity-plus-execution-layer software program designed to address thin liquidity conditions in prediction markets.
• Total Contract Value: C$1,573,000 (Canadian-dollar equivalent).
• Payment Structure:
  • Development Phase: $550,000 USD for Stages A (Proof of Concept, ~4 weeks), B (MVP, ~4-6 weeks), and C (Full Production, ~10 weeks).
  • Licensing Phase: $25,000 USD per month for 24 months, totaling $600,000 USD.
• Consideration Method: $1,000,000 USD of the total consideration is to be paid through the issuance of shares of Prospect Markets, subject to stock exchange approval.
• Intellectual Property: Intellistake originated Gravity and will retain certain rights to the IP or data generated; Prospect Markets receives a two-year exclusivity license to integrate and use Gravity.
• Development Timeline:
  • Stage A: ~4 weeks.
  • Stage B: ~4-6 weeks after Stage A.
  • Stage C: ~10 weeks after Stage B.
  • Total initial development term: 18-20 weeks.
• Use of Proceeds/Context: Intellistake expects total development costs of $300,000 USD.
• Target Market: The software is designed for Prospect Markets' platform, which covers major global sports including NHL, NFL, NBA, MLB, English Premier League, and World Cup.
• Market Context: The agreement addresses liquidity collapse during one-sided markets, breaking news rushes, and cold-start problems for new niche markets.

Notable Quotes

• Jason Dussault, CEO of Intellistake: "Prediction markets have a well-known pressure point -- when order flow becomes heavily one sided, liquidity deteriorates and slippage follows... At Intellistake, we are developing systems designed to address these challenges, and Gravity is how we intend to demonstrate that capability."
• Johnny Chen, CEO of Prospect Markets: "As we prepare to scale our platform across major global sports, market quality becomes just as important as market coverage... Working with Intellistake on the development of Gravity allows us to address liquidity stress at the system level..."