Contract specifications are the written terms that define exactly what an event contract covers, how it settles, when it expires, and how ambiguous cases are decided. They are the rulebook for a single contract.
Last reviewed 17 August 2025 · Educational, not advice
Every event contract is governed by a set of written terms, and those terms are its contract specifications. They turn a loose question, such as whether something will happen, into a precise instrument that can settle to one dollar or zero without argument. The specifications spell out the exact wording of the question, the measure that decides it, the source that will be consulted, the date and time the contract resolves, and the rules that apply when reality is messier than the question assumed. If the price is the market opinion, the specifications are the contract itself.
A typical set of specifications covers several things. There is the precise outcome being measured and any threshold that applies, for example a figure being above or below a stated number. There is the settlement source, the named report, dataset, or authority whose published result decides the contract. There is the resolution date or expiry, the point at which the result is read and the contract pays out. There are trading details such as the tick size, the smallest price increment allowed. And there are the tie breaking and contingency rules, which describe what happens if the source is delayed, revised, or never published, or if the event is cancelled. Good specifications try to remove ambiguity before money is on the line.
This is why reading the specifications matters so much. Two contracts that look like they ask the same question can settle differently because one uses a different source, a different cut off time, or a different rounding rule. A contract can resolve in a way that feels surprising and still be entirely correct under its own terms, because the terms, not your intuition, decide the outcome. Many disputes between participants and platforms come down to someone not having read the exact wording. The specifications are where you learn what you are really trading rather than what you assume you are trading.
Specifications live on the platform itself, usually on the market page or in linked rules, and they can differ from venue to venue for similar sounding markets. The terms for an individual listed contract are generally fixed once it is trading, but a platform can define future contracts differently, and a settlement source can itself change how it reports. None of this removes risk. Understanding the specifications helps you avoid nasty surprises, but a perfectly clear contract can still resolve against you, and the money you commit is genuinely at risk.
A contract asks whether a monthly inflation reading will come in above three percent. The specifications name the exact statistical release, the specific series within it, the release date and time, how a later revision is treated, and what happens if the report is delayed. Two traders with opposite views still agree on all of that, because the specifications, not opinion, will decide who is paid.
Illustrative only. A generic example, not a description of any specific listed contract.
Reading the terms carefully reduces surprises, it does not remove risk. A clearly written contract can still resolve against you, and the money you commit can be lost. Stake only what you can afford to lose, never to chase a loss, and never on borrowed money. If it stops feeling like a free choice, step back. In the United States you can call or text the helpline on 1-800-GAMBLER or visit ncpgambling.org.
Contract specifications are the written terms that define exactly what an event contract covers, including the precise question, the settlement source, the resolution criteria, the expiry, the tick size, and the rules for ambiguous cases. They are the rulebook for a single contract.
Because the wording decides whether you win or lose. Two contracts on a similar topic can settle differently depending on the source they use, the exact threshold, the cut off time, and how edge cases are handled. Reading the specifications is how you know what you are actually trading.
Each platform publishes the terms for a contract, usually on the market page or in linked rules. Always read the version on the platform itself, because details vary between venues and can be updated.
The terms for an individual listed contract are generally fixed once it is trading, but a platform can change how it defines future contracts, and settlement sources can themselves change. Always check the current terms for the specific contract you hold.
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