FameEX Prediction Market Rules for YES/NO Odds, Fees, and Profit & Loss

The FameEX Prediction Market is a binary prediction market where users can use USDT to predict the outcome of upcoming events by choosing YES or NO. Before an event is settled, users may sell their positions early if the market remains open for trading. Once the event result is confirmed, the position will be settled according to the applicable settlement rules.

1. What Do YES and NO Mean?

Each prediction event offers two possible outcomes: YES and NO.

• Buy YES: You predict that the stated outcome will occur.
• Buy NO: You predict that the stated outcome will NOT occur.

For example, you suppose the prediction asks whether a certain team will win a match. You can choose YES if you believe the team will win. You can choose NO if you believe it will not.

The final result will be determined according to the settlement rules of the event. A correct prediction may generate a return, while an incorrect prediction may result in the loss of the amount committed to that prediction.

2. What Is the Difference Between the Buy Amount and YES/NO Odds?

The buy amount is the amount of USDT you actually commit to a prediction.

For example, if you use 100 USDT to buy YES, your buy amount is 100 USDT. Changes in the YES or NO odds after the trade will not change the 100 USDT you originally committed.

YES/NO odds, however, may change based on market expectations and trading activity. These changes can affect the expected return for each outcome. They can also affect the amount you may receive if you sell your position before settlement.

• Buy Amount: The actual amount of USDT committed to the prediction. It does not change after the trade because of later changes in odds.
• YES/NO Odds: These may change with market conditions and can affect expected returns and the result of an early sale.

3. How Do Changes in YES/NO Odds Affect Your Position?

Before settlement, YES and NO odds may change as market expectations about the event change.

For example, you put 100 USDT to buy YES. If market expectations for a YES outcome later change, the corresponding odds and expected return may also change. Your original 100 USDT buy amount remains unchanged. However, if you decide to sell early, current market conditions will affect the actual amount returned to you. As a result, the same position may generate a different return if it is sold at a different time.

FameEX allows users to sell an existing position before event settlement when the market is still available for trading. This can be used to realize a current gain or limit a potential loss. Please note that YES/NO odds and expected returns reflect current market conditions. They do not guarantee the final outcome of the event.

4. What Fees Apply to the FameEX Prediction Market?

Fees in the FameEX Prediction Market mainly apply to three different section including buying, selling early, and event settlement.

5. How Is Profit or Loss Determined When Selling Early?

If the market remains available for trading before settlement, you may sell your current position early. YES/NO odds may change with market conditions. Therefore, the actual amount returned when you sell early may differ from your original buy amount.

If the market moves in favor of your selected outcome, selling early may result in a gain. If the market moves against your selected outcome, selling early may result in a loss.

A selling fee may also apply to an early sale. The final result should be based on the actual returned amount and profit or loss information displayed by FameEX after the transaction is completed.

6. How Is Profit or Loss Determined When Holding Until Settlement?

If you do not sell your position early, the position will be settled after the event result is confirmed. FameEX will determine the result based on your selected outcome and the final event result. A correct prediction may generate a return. An incorrect prediction will result in the loss of the amount committed to that prediction.

During settlement, the system records the result and the corresponding settlement amount. A settlement fee may apply to profitable orders. Settlement fees apply only to profitable orders. The final profit, loss, and settlement amounts are subject to the results shown on FameEX after settlement is completed.

7. Why Can Expected Returns Differ From Final Returns?

Expected returns are estimates based on current market conditions. They do not represent the final amount you will actually receive. Several factors may affect the final result while you hold a position:

• Changes in YES/NO odds
• Selling the position before the event settlement
• Selling fees that may apply to an early sale
• Whether the final event result matches your selected outcome
• Settlement fees that may apply to profitable orders

Your original buy amount does not change because of later changes in odds. However, expected returns, the amount returned from an early sale, and the final settlement result may change.

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For step-by-step instructions on using the FameEX Prediction Market, please refer to:

• How to Use the FameEX Prediction Market? (Web)
• How to Use the FameEX Prediction Market? (App)

Note: YES/NO odds in prediction markets may change with market expectations and trading activity. The displayed odds and expected returns do not guarantee that the event will ultimately resolve in the corresponding direction.

*Risk Warning: Prediction markets are highly speculative and involve a significant risk of loss. Please review the event conditions and settlement rules carefully before trading. You should assess whether participation is appropriate based on your investment objectives, financial circumstances, and risk tolerance.