Satara Takes the Lead in Coinbase Prediction Market
Users can trade regulated 'Yes/No' contracts on various outcomes, including crypto, economics, politics, sports, entertainment, technology, science, and more. Each market has rules explaining how its outcome is decided, and settlement is based only on a stated 'source of truth.'
The trading prohibition for this contract includes current and former players, coaches, and staff of the league, association, or organization governing the event. Paid employees of the league and participants are also prohibited from trading. Additionally, persons who hold material, non-public information on the underlying asset are not permitted to trade.
Prediction markets work by allowing users to buy 'Yes' contracts if they think an event will happen, and 'No' contracts if they don't. If a user buys 10 'Yes' contracts at $0.40 each, for example, their total payout would be $10.00 if the event happens, minus what they originally paid (minus fees).