> For the complete documentation index, see [llms.txt](https://docs.strike.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.strike.fun/smart-contracts/market-factory.md).

# MarketFactory.sol

Singleton factory that creates and manages CLOB prediction markets.

## Market Creation

### `createMarket(priceId, strikePrice, expiryTime, batchInterval, minLots)`

Creates a Pyth-resolved binary market and registers it in `OrderBook`.

### `createMarketWithPositions(priceId, strikePrice, expiryTime, batchInterval, minLots)`

Creates a Pyth-resolved market that uses internal position accounting instead of ERC-1155 outcome-token transfers. Current 5-minute markets use this path.

### `createAIMarket(prompt, modelId, expiryTime, minLots)`

Creates an AI-resolved orderbook market and deposits the AI resolver fee. This is an admin/protocol integration surface; public creator flows should use Flap Token Pools.

All creation functions require `MARKET_CREATOR_ROLE` and emit `MarketCreated`.

## `MarketMeta`

```solidity
struct MarketMeta {
    bytes32 priceId;
    int64 strikePrice;
    uint256 expiryTime;
    address creator;
    MarketState state;
    bool outcomeYes;
    int64 settlementPrice;
    uint256 orderBookMarketId;
    bool useInternalPositions;
    bool isAIMarket;
}
```

## State Machine

```
Open → Closed → Resolving → Resolved
                               ↓
Open → Closed ─────────────→ Cancelled
```

## Transitions

| From        | To        | Trigger                          | Condition                                    |
| ----------- | --------- | -------------------------------- | -------------------------------------------- |
| Open        | Closed    | `closeMarket()`                  | `block.timestamp >= expiryTime`              |
| Closed      | Resolving | `setResolving()`                 | `ADMIN_ROLE`                                 |
| Resolving   | Resolved  | `setResolved()`                  | `ADMIN_ROLE`                                 |
| Open/Closed | Cancelled | `setCancelled()` / fallback flow | `ADMIN_ROLE` or configured cancellation path |

## Registry

* `getActiveMarketCount()` — number of markets in Open state.
* `getClosedMarketCount()` — number of closed markets.
* `getResolvedMarketCount()` — number of resolved markets.

## Admin Functions

| Function                                           | Access               | Description                        |
| -------------------------------------------------- | -------------------- | ---------------------------------- |
| `pauseFactory()`                                   | `ADMIN_ROLE`         | Emergency pause on market creation |
| `setDefaultParams(batchInterval, minLots, feeBps)` | `ADMIN_ROLE`         | Update default market parameters   |
| `setAIResolver(resolver)`                          | `ADMIN_ROLE`         | Update AI resolver address         |
| `setNextFactoryMarketId(nextId)`                   | `DEFAULT_ADMIN_ROLE` | Recovery helper for redeployments  |

## Access Control

* **DEFAULT\_ADMIN\_ROLE:** role management and recovery helpers.
* **ADMIN\_ROLE:** lifecycle updates such as resolving, cancellation, pause, default params, and AI resolver.
* **MARKET\_CREATOR\_ROLE:** market creation.
* `closeMarket()` is permissionless once expiry has passed.

## Events

```solidity
event MarketCreated(uint256 indexed factoryMarketId, uint256 indexed orderBookMarketId, bytes32 priceId, int64 strikePrice, uint256 expiryTime, address indexed creator);
event MarketClosed(uint256 indexed factoryMarketId);
event MarketStateChanged(uint256 indexed factoryMarketId, MarketState newState);
event FactoryPaused(bool paused);
event DefaultParamsUpdated(uint256 batchInterval, uint128 minLots);
```