Written by Pablo Gómez
Founder & CEO at Metlabs · Reviewed on October 11, 2026
In a binary market, a contract may pay one settlement-asset unit if an outcome occurs and zero otherwise. A price of 0.65 units may imply a 65% probability, subject to liquidity, fees and restrictions.
Resolution depends on sources and rules determining what occurred. Dispute procedures or cancellation conditions may exist. A contract cannot itself know an external fact.
Markets may use centralized infrastructure or smart contracts. Participation rights and legal treatment depend on activity and jurisdiction.
Also known as
- Prediction market
