1. Complete Event Contract Trading Process
Gate Event Contracts are a trading product centered on "price direction prediction", specializing in short-cycle directional trading. They require no leverage or margin calculations and feature a clean, straightforward trading logic. The entire process involves three operation scenarios: open a position, close a position early, and settle at expiration. They support multi-period up/down trading of major assets like BTC and ETH.
1.1 Buy to Open
After entering the Event Contracts trading page, select the price event for the corresponding asset and time period, predict whether the price will go up or down, choose Call or Put, enter the desired price in the order book and input the quantity, then submit the order to open a position.
- Buy Call: When you anticipate that after the current cycle ends, the underlying asset price will be higher than the cycle start price, buy the corresponding call contract shares.
- Buy Put: Anticipating that at the end of the current cycle, the price of the underlying asset will be lower than the cycle start price, buy the corresponding put contract shares
This product has no margin liquidation mechanism and is traded entirely in USDT. Participation thresholds are clear and standardized: the price range for a single contract is 0.01–0.99 USDT, the minimum order value is no less than 1.5 USDT, and the minimum order quantity is no less than 6 contracts. Once the thresholds are met, users can participate in event trading. The contract price reflects the market's probability expectation of the event's outcome in real time. Additionally, the product has no leverage, and the maximum loss is only the principal invested when opening a position, making the risk fully controllable.
1.2 Close Position Early
Before the end of the corresponding price event cycle and automatic system settlement, users can sell their held contract positions on the order book at any time to independently execute take-profit or stop-loss operations, without waiting for the cycle to expire — offering extremely high trading flexibility.
- Take Profit: When market trends align with your analysis and contract prices rise, sell holdings anytime to lock in paper profits
- Stop-Loss: Market moves against your judgment; sell early to stop losses on principal and exit.
Practical Example: BTC Short-Term Event Early Close: A user buys 100 BTC call contracts at 0.40 USDT each, for a total of 40 USDT. Market sentiment turns bullish, and the contract price rises to 0.72 USDT per contract. The user sells all contracts to close the position. Profit in this example ≈ (0.72 – 0.40) × 100 ≈ 32 USDT. Note: This is the theoretical profit. The actual amount received will be after deducting platform trading fees.
1.3 Auto Settlement at Expiry
If you do not manually close your position before the event period ends, the position will be held until expiry and automatically settled according to the established rules. No manual action is required.
- Correct Prediction (Profitable): After the event period ends, as the trend judgment is correct, each winning contract is settled at 1 USDT with no settlement fee.
- Incorrect Prediction (Loss): After the event cycle ends, if the trend judgment is incorrect, the held contract value goes to zero directly, with no settlement fee.
Practical Example: BTC Position Expiration Settlement: A user purchased 100 BTC call contracts at 0.40 USDT each, for a total investment of 40 USDT. At the end of the period, if the BTC settlement price is higher than the starting price, the bullish judgment is correct, the contracts win, and the system automatically settles 100 USDT to the account. If the price declines, all held contracts expire worthless and the principal is lost.
2. General Rules for Event Contract Settlement
Each price event contract has clear trading rules defining the trading asset, time period, and settlement criteria. All settlement rules are open and transparent, and users can view detailed rules for the corresponding event at any time. The entire settlement process is automatically executed by the system, ensuring a standardized process with traceable results.
2.1 Standard Settlement Process
- Settlement Lock: Trading ceases immediately upon contract cycle expiration. Opening or closing positions is no longer supported.
- Result Determination: The system determines whether the price goes up or down by comparing the cycle start price with the settlement price upon expiration, based on the official price determination criteria.
- Anomaly Review: In case of abnormal price data, unusual market fluctuations, or other special circumstances, the system will initiate a review mechanism and, if necessary, defer settlement to ensure fair settlement.
- Auto Settlement: After result determination, the system immediately executes settlement, automatically transfers profit/loss funds, and clears expired positions.
- Contract Settlement: After settlement, the current event contract is automatically delisted, and this trading cycle officially ends.
After settlement, all profit/loss funds are credited to your account in real time, and open positions are automatically closed. No manual action is required.
Settlement Example: User holds 500 BTC call event contracts for the event "BTC price increases in the current cycle." After the cycle ends, the system determines that the BTC settlement price is higher than the cycle start price, and the call side wins. The system automatically settles at 1.00 USDT per contract, with a credited amount of 500.00 USDT.
2.2 Settlement and Result Determination Criteria
Gate Event Contracts use the underlying price at the moment the event opens as the target price (base price), which serves as the sole criterion for determining price movement. Settlement uses the platform's official fair price data (Chainlink data). The rules are open and transparent. Before the market opens, there is no target price, displayed as --;
(1) Price Movement Determination Rules
- Settlement Price ≥ Target Price → Up, Call Contract Wins
- Settlement Price < Target Price → Down, Put Contract Wins
(2) Exception Handling
For special scenarios such as extreme market volatility or missing price data, the platform has established comprehensive fallback handling rules. In the event of settlement data anomalies or distorted market data, the system automatically pauses settlement and initiates a review process, preventing unfair settlement caused by abnormal market conditions and safeguarding user interests to the fullest extent. Once the review is complete, settlement is executed according to the final verified results.
3. Product Core Advantages and Risk Warning
3.1 Core Trading Advantages
Zero Leverage, Low Risk: No leverage, no forced liquidation, no margin calls. Maximum loss is limited to your initial principal, making risk manageable.
Transparent, Simple Rules: Rise/fall determination, settlement standards, and fee rules are all disclosed, with clear and easy-to-understand settlement logic
Flexible Operation: Close positions early at any time, control your trading pace, and adjust take-profit and stop-loss flexibly
Low Barrier to Entry: start with 1.5 USDT, no complex setup, beginners can quickly get started with short-term trading
3.2 Risk Warning
The contract settlement price is the fair settlement price determined after the period ends. There may be minor deviations from intraday instantaneous prices or real-time quotes, which are within the normal settlement range. The profit/loss result is based on the comparison between the target price and the final settlement price.
During extreme market conditions, to ensure fair and stable trading for all, the platform may activate risk control mechanisms, suspend settlements, or fine-tune relevant parameters. Normal trading and settlement will resume in an orderly manner.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
