Coinbase has launched a new prediction market focused on the outcome of the Texas vs Oklahoma event. Users can trade contracts predicting whether a specific event will happen or not, with each contract priced based on the market's odds. For example, a price of $0.65 indicates a 65% chance of the event occurring. Traders can buy 'Yes' if they believe the event will happen or 'No' if they think it won't. If correct, they earn $1 per contract minus what they paid, minus fees.
The prediction market is part of Coinbase's regulated derivatives entity, Coinbase Financial Markets (CFM). To participate, users need a Coinbase account and must complete onboarding, including identity verification and basic income/net worth details. Funds can be transferred from the main Coinbase account to trade in the prediction markets. Each market has clear rules and settlement policies based on an independent, regulated source of truth.
Settlement occurs when the event result is confirmed, and payouts are made to traders who held the correct contracts. Fees are applied to each trade, covering operational costs and broker fees. Trading is available 24/7, except during a weekly maintenance window from Thursday 3:00-5:00 am ET. Coinbase emphasizes that prediction markets involve substantial risk and are not a recommendation to buy or sell any asset.