Event Contracts: Core Trading Mechanism Explained｜Gate ｜ Gate

1. Order Book and Pricing Logic

(1) Price Is Market Probability

Gate Event Contracts' share price intuitively reflects the market's consensus probability of an event's outcome, with a price range of 0.01–0.99 USDT. Price precision and order step are both 0.01 USDT. The market displays Up Probability and Down Probability in real time. When the probability is less than 1%, it shows < 1%. When there is no data, it shows --.

(2) Order Book Infrastructure

The event contract order book consolidates all active valid orders within the current event cycle, displayed on the buy and sell sides. It serves as the core basis for users to place orders and receive matches. The order placement rules on both sides are clear and consistent.

2. Order Types and Rules

Gate Event Contracts support a variety of mainstream order types, catering to different user needs such as quick execution, limit orders, and precise trading.

(1) Limit Order

Users can set the trading price for their orders, with the order price range fixed at 0.01–0.99 USDT. The order enters the order book and waits for a counterparty to fill, making it suitable for users seeking precise transaction costs.

• Supports placing orders independently by contract share quantity
• If the order price matches the current order book price, it can be immediately matched and executed as a Taker order
• If an order cannot be immediately matched, it will be placed in the order book queue as a Maker, providing market liquidity

(2) Market Order

Users do not need to manually set a price. The system automatically fetches the best executable price from the current order book and completes the trade instantly. This is ideal for scenarios requiring rapid position opening or emergency position closing.

• Market buy orders support placing orders with a USDT cost amount. The system automatically calculates the estimated number of contracts to open. Cost precision: 0.01 USDT
• By default, the IOC (Immediate-or-Cancel) execution logic is applied to maximize transaction timeliness

(3) Cancel Order Rules

Before an order is fully filled, users can cancel it at any time. If the order is partially filled, only the remaining unfilled portion can be canceled; the filled portion cannot be canceled. The page supports a batch "Cancel All" operation. A confirmation popup will appear by default. Users can check "Don't remind me again" in Trading Settings to disable the popup, and they can manually re-enable it later.

3. Capital Usage and Profit/Loss Mechanism

(1) Margin Fund Rules

Gate Event Contracts have no leverage, no margin calls, and no forced liquidation, completely eliminating the risk of liquidation. The product creates a dedicated Event Contract account that supports free fund transfers with a minimum transfer precision of 0.01 USDT. When a position is opened, the system freezes the corresponding funds as margin, keeping your funds secure and under your control.

Core calculation formulas strictly follow product specifications:

Max openable quantity = available assets / cost per contract
Cost per contract = order price + fee per contract
Single order cost = order price × order quantity + trading fee
Reward = position size × 1.00 USDT

Clear and fixed risk boundaries:

• Maximum loss: total margin at opening, fixed cap, no excess loss
• Maximum profit: When the position judgment is correct, the estimated settlement profit = position size × 1.00 USDT. The actual profit is the estimated profit minus the initial matching transaction fees. No fees are deducted at delivery

All order, position, settlement, and transfer records can be viewed in the Order Center, History Orders, and Funds Flow pages. Data from the last 7 days is shown by default, with up to 90 days of history available. All trading data is publicly verifiable and traceable.

(2) Position Value Calculation

Your real-time holding value changes dynamically with market price fluctuations. Formula: Current holding value = Units held × Current market unit price. Note: Floating holding value is for P&L reference only and cannot be used to deduct or replace trading margin.

Example: A user holds 160 BTC call contracts with a current market unit price of 0.66 USDT. The real-time position value = 160 × 0.66 = 105.60 USDT. The position value is for reference of unrealized profit/loss only and cannot be used to offset margin or be withdrawn directly.

(3) Profit and Loss Calculation Rules

P&L calculation is divided into three scenarios based on user position operation method, with transparent rules:

• Position Expiration Settlement P&L: If your prediction is correct and the settlement is successful, the profit is settled at 1.00 USDT per contract. Only the previous matching fees are deducted; no settlement fee
  - Early Close Realized P&L: (Avg Sell Price - Avg Buy Price) × Sell Qty - Sell Fee. P&L credited after close in real time
• Position Unrealized P&L: Floating P&L during holding period = (Market Price − Average Opening Price) × Position Size × Direction Coefficient (Long: 1, Short: -1). This is a reference P&L for accounting purposes only. Rate of Return = Unrealized P&L / Cost × 100%

4. Trading Fee Mechanism

Event contract fees are incurred only during the opening and closing of positions via matching trades, with no fees for settlement. The product applies different fees for limit (maker) and market (taker) orders; refer to the platform's official announcement for the exact fee schedule.

(1) Delivery Fee

Event settlement at expiration has no settlement fees, regardless of whether the position is judged as successful or failed. The platform does not charge settlement fees. Only opening and closing matching transactions generate corresponding fees.

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.