Market Rules
Market rules define the exact question being traded, how the outcome is determined, the settlement source, and key timing details like expiration.
Definition
Market rules define what the contract means and how it will be resolved in a prediction market. Rules specify the exact event definition, the settlement source, and timing such as expiration.
Why it matters
Market rules are the foundation of trust. They determine how resolution works and what payout you receive if you are correct.
Rules and trading costs
Rules can also affect liquidity. Markets with ambiguous rules can have wider spreads and lower depth, increasing all in cost even before settlement happens.
Common pitfalls
Not reading the exact wording: Small wording details can change the outcome.
Ignoring the settlement source: Always verify the named source and any timestamp cutoffs.