What are event contracts?
Event contracts reflect your position on a specific event outcome
Each contract you buy pays out $1 if the outcome is correct
You must buy or sell at least one contract in any single transaction
Contracts can only be purchased or sold in whole amounts; you cannot trade partial contracts.
Example: Cincinnati vs. Pittsburgh Game Winner
If you predict Cincinnati will win, you buy contracts for that outcome
Your payout is based on the number of contracts you have bought
How are payouts calculated?
Each contract you own pays $1 if correct, $0 if incorrect.
When you buy contracts, the final estimated payout will be displayed for you to review before submitting your order.
Your payout for a correct prediction is based on the payout multiplier
The payout multiplier directly corresponds to the contract price
The payout multiplier is the potential max payout divided by cost basis including fees.
Your maximum loss is the amount you paid for the contracts.
How do I buy and sell contracts?
You can buy or sell contracts to increase or decrease your total position.
You can buy more of the same position, or
Sell part of your position before an event concludes
Buy orders
To buy a position, select your predicted outcome for an event
Enter the dollar value you want to buy
Review and confirm to submit your order
Cash out early (Sell orders)
You can close a position (sell) before the event ends
The difference between your opening contract price and closing contract price will be your profit or loss, excluding any transaction fees
Fees
Sleeper charges a small commission per contract traded
Fees are disclosed before you place a trade
Current fees charged by Sleeper can also be found in the Sleeper Markets LLC Fee Disclosure document.
Example
You buy 10 contracts for Cincinnati to win at $0.40 each ($4 total).
If outcome is correct:
Each contract settles at $1
You receive $10
Your net profit is $6
If outcome is incorrect
Each contract settles at $0
You lose the initial $4 investment
If you sell 10 Yes contracts before the event ends at $0.60
You receive $6
Your profit is $2 before event ends.
Note: the above example excludes trading fees for simplicity. Sleeper Markets LLC charges a small commission per contract traded. Fees are disclosed before you place a trade.
When will my position settle?
If you hold a position until the event ends, your final profit or loss will be determined once the market settles.
If you cash out your contracts before the event ends, your position will settle when the sell order is completed.
Can I sell early?
You may have the option to sell your contracts, depending on the live status of the event.
If the event has concluded, or there are no buyers for that side, you will not have the option to cash out. The contract value will be based on current market conditions.