When you buy “Yes”, you're betting the event will happen. If it does, you earn $1 per contract. When you buy “No”, you're betting the event will not happen. If it doesn't, you earn $1 per contract.

You need a Coinbase account and must complete onboarding to Coinbase Financial Markets (CFM), our regulated derivatives entity. This includes identity verification and basic income/net worth details. Once approved, you can fund your account and start trading.

Each market has rules that explain how its outcome is decided. When the event happens, an independent, regulated exchange determines the result using a stated “source of truth,” such as official data, market prices, or trusted news. Settlement is based only on that source, which is listed in the contract before you trade.

When the event result is confirmed, each correct contract you hold settles at $1, and each incorrect contract settles at $0. Your total payout is $1 × number of winning contracts, and your profit is that payout minus what you originally paid (minus any fees).



For example, say you buy 10 “Yes” contracts at $0.40 each, this costs you $4.00. If the event happens, each contract pays you $1.00. The payout credited to you would be 10 * $1.00 = $10.00. However, your profit would be $10.00 - $4.00 = $6.00 (minus fees).

When you trade, a fee is applied. This covers costs for operating the market and the broker fee. Fees vary by market and are shown in the trade preview before you place your order.