Event Contract Trading Rules

Definitions

Capitalized terms not defined here have the meanings in the Terms of Service.

• Event Contract or Contract — A fully collateralized binary instrument that pays $1.00 per winning share and $0.00 per losing share upon final settlement, based on whether a defined event occurred (YES) or did not occur (NO).
• Member — A registered user or sub-account authorized to trade.
• Platform — Marketry's order-matching system, APIs, and related services.
• Order — An instruction to buy or sell a quantity of YES or NO shares at a limit price, or a market order submitted under published order types.
• CLOB — Central limit order book; orders match price-time priority.
• Settlement Criteria — Objective YES/NO conditions published on the market page (`settlementCriteria`).
• Settlement Source — Authoritative public source(s) for resolution (`settlementSource`), e.g., SEC filings, earnings releases.
• Insider — Any person with access to material non-public information relating to the underlying event before public disclosure.
• Source Agency — The company, regulator, or entity whose disclosure determines the outcome.
• Wash Trade — A trade without change in beneficial ownership or with pre-arranged offsetting accounts to inflate volume or distort price.
• Spoofing / Layering — Bids or offers intended to be canceled before execution to mislead other participants.
• Paper Phase — Simulated balance period during beta; mechanics mirror live rules unless noted.

Scope and authority

These Rules apply to all orders and trades on the Platform. Marketry may adopt emergency rules to address market disturbances, system failures, suspected manipulation, or regulatory directives. Emergency actions may include halting trading, canceling orders, modifying position limits, or adjusting settlement pending investigation.

Marketry's compliance function has authority to investigate conduct, request information, suspend trading privileges, and refer matters to regulators. Members must cooperate within five (5) business days of a written request unless a longer period is agreed.

Uniform contract terms

Unless otherwise specified on a market page, all Event Contracts on Marketry share the following terms:

1. Binary payout — Each winning share settles at $1.00; each losing share at $0.00.
2. Price range — Limit orders must be priced between $0.01 and $0.99 inclusive (1¢–99¢).
3. Collateral — Buyers reserve price × quantity in cash (or paper balance). Sellers must hold sufficient shares.
4. Complementary minting — When a YES buy and NO buy collectively offer at least $1.00, the engine may mint paired shares and fill both orders per published matching logic.
5. No shorting beyond inventory — You may not sell shares you do not hold unless the engine supports explicit short mechanics; default is long-only inventory.
6. Transfer restriction — Positions may not be transferred off-Platform except through settlement or approved procedures.
7. Expiration — Trading ceases when the market is halted, closed, or resolved per market status.

Contract-specific terms

Each market page displays settlement criteria, settlement source, end date, and related fields. You must review them before trading. Listing standards require objective, publicly verifiable resolution (see Market Listing Standards). Subjective or manipulable contracts are prohibited from listing.

Trading hours and market states

• Active — Orders may be placed, modified, and canceled; matching occurs continuously subject to maintenance windows.
• Halted — No new orders; existing orders may be canceled at Member request unless compliance locks the market.
• Closed — Trading ended; awaiting resolution.
• Resolved — Final outcome determined; settlement processed.

Scheduled maintenance will be announced when practicable. Markets may enter halt during suspected manipulation, data feed failures, or pending corporate events per insider blackout policy.

Order entry, types, and cancellation

Order types

• Limit — Rests on the book at your specified price until filled, canceled, or expired per time-in-force.
• Market — Executes immediately against available liquidity at best available prices, subject to optional max price / slippage caps.
• 1-Tap / notional — Convenience market-style orders sized in U.S. dollars; converted to shares at execution prices.

Time in force

• GTC (Good-Til-Canceled) — Remains on book until filled or canceled.
• IOC (Immediate-Or-Cancel) — Fills immediately available quantity; unfilled remainder canceled.
• FOK (Fill-Or-Kill) — Must fill entire quantity immediately or cancel entirely.

Cancellation and modification

Members may cancel open limit orders while the market is active. Cancellations are not guaranteed during system outages. Marketry may cancel orders that violate collateral requirements, price bands, or these Rules.

Insufficient collateral

Orders without sufficient cash (buy) or shares (sell) are rejected. Members must not intentionally submit orders expected to fail to test systems or harass the book.

Matching, priority, and execution

1. Price priority — Better-priced orders execute first (highest bid, lowest ask).
2. Time priority — At the same price, earlier orders execute first.
3. Partial fills — Orders may fill partially unless FOK is specified.
4. Trade reporting — Executed trades appear in your portfolio and public tape where applicable.
5. No guaranteed execution — Limit orders may never fill; market orders may experience slippage in thin markets.

Marketry may bust or cancel trades that result from obvious errors, system malfunctions, or violations of these Rules, with notice to affected Members when practicable.

Settlement and final payout

Resolution process

1. Upon occurrence of the settlement event (or end of review period), Marketry determines YES or NO per Settlement Criteria and Settlement Source.
2. The market status becomes resolved; `resolvedOutcome` is published.
3. Winning shares pay $1.00 each; losing shares pay $0.00.
4. Open orders on the resolved market are canceled; reserved balances are released.
5. Positions are zeroed; P&L is recorded in settlement history.

Objective sources

Resolution relies on public documents—earnings releases, SEC filings (10-K, 10-Q, 8-K), official company press releases, regulatory orders, or other sources named on the market page. If primary sources conflict, Marketry compliance publishes a resolution notice with rationale.

Disputes and appeals

Members may submit settlement disputes to compliance@marketry.xyz within 48 hours of resolution posting, citing specific source material. Marketry's determination after review is final except for manifest error (e.g., misread objectively stated number).

Paper phase

During paper beta, payouts adjust simulated balances only. Settlement mechanics mirror live operation for testing.

Prohibited transactions and activities

1. Non-competitive / pre-arranged trades — Entering trades agreed in advance with another party to transfer risk without open competition.
2. Wash trading — Trading between accounts you control, or coordinating with others, without genuine economic purpose or change in beneficial ownership.
3. Spoofing and layering — Placing orders intended to be canceled before execution to create false liquidity or move price.
4. Manipulation — Any act to distort price, volume, or settlement, including corners, squeezes, or false reporting.
5. Money pass — Circular flows designed to disguise ownership or launder activity.
6. Front-running — Trading ahead of customer orders you owe duties to, or exploiting non-public order book information.
7. Insider trading — Trading contracts where you possess material non-public information about the underlying event, or where you are a decision-maker who can influence the outcome.
8. Source agency trading — Employees or affiliates of the Source Agency trading related contracts without written compliance clearance.
9. False or misleading information — Misrepresentations to Marketry or other Members.
10. Circumvention — Evading order types, surveillance, position limits, or geographic restrictions via multiple accounts, VPN obfuscation, or third-party proxies.
11. Market data abuse — Scraping, republishing, or reverse-engineering data beyond API license.
12. Platform abuse — DDoS, API hammering, exploitation of bugs, or interference with other Members.
13. Negative balance / insufficient funds — Knowingly trading without collateral; failing to cure deficits promptly in live phase.
14. Unregistered solicitation — Acting as broker, advisor, or pool operator requiring registration without proper licenses.

Conduct inconsistent with just and equitable principles of trade or detrimental to the Platform is prohibited even if not listed above.

Insider restrictions and event blackouts

Members linked to a Source Agency (employer, officer, director, material consultant) must not trade related contracts without prior written approval from compliance@marketry.xyz.

Marketry may impose an automated 48-hour pre-event blackout before scheduled earnings, filings, or other catalysts listed on the contract. Orders placed in violation may be canceled and accounts referred for discipline.

Position limits and accountability

Marketry may publish per-contract position accountability levels. If you exceed a level, compliance may require position reduction, additional information, or trading restrictions. Limits may be adjusted to preserve market integrity.

Concentrated positions that threaten orderly liquidation or settlement may be subject to mandatory reduction.

Halts, emergencies, and trade adjustments

Marketry may halt, suspend, or cancel trading when:

• Extraordinary volatility or disorderly markets
• Suspected manipulation or insider activity
• System failure or data feed corruption
• Regulatory directive or legal requirement
• Force majeure affecting the underlying company or data sources

Emergency actions may include modifying limits, canceling resting orders, busting erroneous trades, or delaying settlement pending review. Members will be notified when practicable via Platform notice or email.

Surveillance and audit

Marketry operates automated surveillance for wash trading, spoofing patterns, cross-account coordination, abnormal volume, and insider-linked accounts. All order events and trades are logged with timestamps for audit.

We may share information with regulators, law enforcement, and service providers under confidentiality agreements. Members consent to such disclosure as required by law.

Disciplinary process

1. Alert or report — Surveillance or Member report triggers review.
2. Investigation — Compliance may freeze trading, request documents, and interview involved parties.
3. Determination — Findings issued with sanctions proportionate to violation severity.
4. Sanctions — May include warning, order cancel, trade bust, temporary suspension, permanent ban, forfeiture of simulated or live balances where permitted by law, and regulatory referral.
5. Appeal — Submit written appeal to compliance@marketry.xyz within 14 days of notice, including counter-evidence. Appeals do not stay sanctions unless we expressly agree.

Confirmed manipulative or insider conduct may be referred to the CFTC, FinCEN, SEC, or state authorities without further notice (no tipping off where prohibited).

Marketry personnel and API operators

Marketry employees and contractors with access to material non-public Platform information may not trade Event Contracts on Marketry or tip others. API master keys confer fleet management power; compromise of a master key is treated as a severe security incident and may trigger account suspension pending review.

Recordkeeping

Members must retain their own trading records as needed for tax and compliance purposes. Marketry retains order, trade, consent, and KYC records for at least five (5) years or longer as required by applicable regulation.

Amendments to these Rules

Marketry may amend these Trading Rules by publishing a new version date. Material changes will be announced on the Platform. Continued trading after the effective date constitutes acceptance. You may need to re-accept updated Rules to place orders.

Member acknowledgement

By placing an order, you represent that you:

• Have read and agree to these Trading Rules and applicable contract-specific terms
• Are not prohibited from trading due to insider status, jurisdiction, or discipline
• Understand the risks of Event Contract trading
• Are trading for your own account or with proper authorization
• Will not engage in prohibited conduct

Contact: compliance@marketry.xyz · legal@marketry.xyz