Prediction Market Trading Guide

This guide explains how prediction markets work and how your potential returns are calculated.

  

  

How to Participate

  

In a prediction market, you trade based on the outcome of a specific event.

  

Steps:

1. Browse Events: Choose an event on the Prediction Market page
2. Choose Your Position: Pick “Yes/No” or “Up/Down” based on your view
3. Place Your Order: Enter your order amount at the current market price and confirm

  

  

Understanding Price & Probability

   

On the order page, the price shown next to each outcome (e.g., 0.83 USDT) reflects both its current market price and the implied probability.

     

  

Cost per Share:

If “Up” is priced at 0.83, each share costs 0.83 USDT, implying a probability of approximately 83%.

Converting Investment into Shares

When you place an order, your amount is automatically converted into shares based on the current price.

  

Formula:

Shares = Order Amount ÷ Current Price

  

Example:

• Current Price: 0.83 USDT
• Order Amount: 10 USDT
• You receive ≈ 12.05 shares (10 ÷ 0.83)

Note: The actual number of shares may vary slightly due to price movement or fees. Please refer to the final execution result.

  

Price vs. Potential Return

• Higher Price: Higher probability, lower potential return
• Lower Price: Lower probability, higher potential return

  

Reminder: The price represents your entry cost, not your final payout.

  

  

Settlement & Payouts

   

Once the event outcome is finalized, positions are settled as follows:

• Winning Prediction: Each share is settled at 1 USDT.
• Losing Prediction: Each share becomes worthless (0 USDT), resulting in a total loss.

  

Example:

If you invested 10 USDT at 0.83 (receiving 12.05 shares):

• Correct: Total Payout ≈ 12.05 USDT (Profit ≈ 2.05 USDT).
• Incorrect: Your 10 USDT investment is fully lost.

  

  

Risk Disclaimer

• Prediction market prices can change rapidly due to market sentiment and new information.
• An incorrect prediction may result in a total loss of your investment. Even if your prediction is correct, returns may be limited if your entry price is high.
• Please trade responsibly and make sure you understand the event rules before participating.