Prospect Markets Announces C$1,573,000 Development Agreement with Intellistake to Build 'Gravity', a Liquidity Management System for Prediction Markets

Executive Summary

• Prospect Prediction Markets Inc. entered into a development and platform agreement with Intellistake Technologies Corp. to design and develop "Gravity," a modular liquidity and execution layer software solution for prediction markets.
• The agreement involves total consideration of up to US$1,150,000, with US$1,000,000 payable via the issuance of Prospect Markets shares (subject to stock exchange approval) and the remainder in cash.
• Gravity is designed to address liquidity challenges in high-volume sports prediction markets, with a phased development roadmap (Stages A, B, and C) followed by a 24-month exclusivity license for Prospect Markets.

Key Details

• Parties: Prospect Prediction Markets Inc. (TSXV: MKT) and Intellistake Technologies Corp. (CSE: ISTK).
• Agreement Date: March 2, 2026.
• Product: "Gravity," a modular liquidity and execution engine designed to improve market resilience, reduce slippage during one-sided markets, and accelerate price discovery for new niche markets.
• Development Roadmap:
  • Stage A: Proof of Concept (~4 weeks).
  • Stage B: MVP (~4-6 weeks after Stage A).
  • Stage C: Full production release (~10 weeks after Stage B).
• Financial Terms:
  • Development Costs: Total expected development costs are US$300,000.
  • Stage A, B, C Consideration: US$550,000 payable for the first three stages.
  • Licensing Fee: US$25,000 per month for 24 months (total US$600,000) commencing after Stage C.
  • Total Consideration: Up to US$1,150,000.
  • Payment Structure: US$1,000,000 to be paid via issuance of Prospect Markets shares; remaining balance in cash.
• License Terms: Prospect Markets receives a two-year exclusivity license to integrate and use Gravity on its platform.
• Intellectual Property: Parties hold rights in Gravity IP or data generated from its operation as set out in the Agreement.
• Market Context: The release cites FalconX data indicating prediction market volumes grew ~4x from 2024 to 2025, with an annualized run-rate of ~$325+ billion in 2026. Kalshi reported $1 billion in daily volume during the Super Bowl in January 2026.

Notable Quotes

• 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, helping ensure a consistent and reliable experience for users as volume and engagement grow."
• 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."