Contracts

Contract Explanation

The size of an order is measured in contracts and all contracts are denominated in USD. Therefore, 1 contract represents a notional value of $1, and 100 contracts represents a notional value of $100. This means that if 1 contract wins it resolves to $1 and if 100 contracts win they resolve to $100. Alternatively, if 1 or 100 contracts lose, they all resolve to $0.

Outcomes

Buying the contract or selecting up is going long the contract. The contract wins if the underlying asset's price is at or above the price to beat by expiration. The contract loses if the asset's price is below the price to beat by expiration.

Selling the contract or selecting down is going short the contract. The contract wins if the underlying asset's price is below the price to beat by expiration. The contract loses if the underlying asset's price is at or above the price to beat by expiration.

When the market epoch ends the resolution price (price that determines if the contract won or lost) is calculated based on the underlying asset's price given by the oracle. Keep in mind that the resolution prices are based on a Time Weighted Average Price (TWAP).

Comparison to Futures

It is similar to longing or shorting tokens on margin in a perpetual futures exchange. There are no separate contracts for up and down. There are no liquidations or funding fees, unlike perpetual futures.