# Market types

There are two types of markets on the platform: **Event Markets** and **Price Markets**. Both are parimutuel whereby all funds enter a shared pool, and winners split it proportionally. However, they differ significantly in structure, pricing mechanics, and how strategies are managed.

### Comparison between Event Markets and Price Markets

<table><thead><tr><th width="173.046875">Type</th><th width="254.9140625">Event Markets</th><th width="336.39453125">Price Markets</th></tr></thead><tbody><tr><td><strong>Topic focus</strong></td><td>Event outcomes</td><td>Asset price ranges</td></tr><tr><td><strong>Round structure</strong></td><td>Open-ended until resolution</td><td>Fixed 8-hour rounds (4h trading, 4h settlement)</td></tr><tr><td><strong>Resolution trigger</strong></td><td>Event conclusion or scheduled end time</td><td>Fixed target time (8h from round open)</td></tr><tr><td><strong>Pricing model</strong></td><td>Power Curve</td><td>Clock Curve</td></tr><tr><td><strong>Driver of price</strong></td><td>Number of tokens minted per outcome</td><td>Time elapsed in the round</td></tr><tr><td><strong>Early entry advantage</strong></td><td>Lower price before demand builds</td><td>Significantly lower price early in round</td></tr><tr><td><strong>Position exits</strong></td><td>Allowed before resolution</td><td>Not permitted — locked until resolution</td></tr><tr><td><strong>Payout structure</strong></td><td>Proportional share of total pool</td><td>Proportional share of total pool</td></tr><tr><td><strong>Payout availability</strong></td><td>At resolution finalization</td><td>At resolution finalization</td></tr><tr><td><strong>Continuous rounds</strong></td><td>No</td><td>Yes — new round opens every 4 hours</td></tr></tbody></table>

{% tabs %}
{% tab title="How event markets work" %}
Event Markets are open-ended outcome markets. A market is created around a specific question or event, with multiple possible outcomes. Participants mint outcome tokens for whichever outcome they expect to grow in demand, or resolve as correct, depending on their strategy.

#### Outcomes & Structure

Event Markets support **multiple outcomes** — not just binary yes/no. Each outcome has its own token, and all tokens draw from the same shared pool at resolution. Market resolution can occur at a pre-set end time, or **earlier if the underlying event concludes** — for example, a market on a sports result resolves as soon as the final score is confirmed, not at a scheduled future time.

#### Sports markets

Sports markets are a subset of Event Markets. They create eventcoins around live sports events. There are two main structures: **Scoregrid** and **Outright & Prop** markets.

**Scoregrid**

Scoregrid asks one specific question: **What will the exact score be?**

For a soccer match, traders buy and sell tokens across a **6 × 6 grid**. Each cell represents one exact scoreline, such as `2–1` or `0–0`. All cells draw from the same shared pool. When the match ends, the full pool flows to holders of the correct scoreline.

* **Trading window:** Scoregrid markets close at kickoff. There is no in-play trading<br>

  <figure><img src="/files/zupnDQdXA1o2PKD44z02" alt=""><figcaption></figcaption></figure>
* **Dynamic odds:** Prices shift continuously as traders buy and sell. Crowded scorelines get expensive. Thin scorelines stay cheaper. Early, contrarian calls benefit the most: you pay less and face fewer competitors for that cell's payout. If the crowd piles into 1–0 and you take 2–1 early, a correct call on a thin cell pays out at a higher multiple than following consensus
* **Position exits:** Positions can be sold only while the market is open. After kickoff, positions remain locked until settlement
* **Resolution & payouts:** Once the final score is confirmed, holders of the winning scoreline split the pool proportionally

**Outright & Prop markets**

Outright and Prop markets cover outcomes beyond the exact final score

Examples include:

* A player's total points or assists in a match
* Whether a team reaches the knockout round
* Which team wins a series or advances a stage

#### Pricing: Power curve

Outcome token pricing follows a power curve that is **demand-based**. Each mint increases the price of that outcome token for subsequent buyers — cost is a function of how many tokens for that outcome already exist.

> The more popular an outcome becomes, the more expensive it gets to enter.

This means:

* **Early entrants** pay lower prices on outcomes before they attract attention
* **Later entrants** pay a higher price, reflecting accumulated market conviction
* Prices across outcomes shift dynamically as minting activity changes supply

Learn more in [#pricing-power-curve](#pricing-power-curve "mention")

#### Position Exits

Positions in Event Markets **can be sold before resolution**. Participants may exit at any point while the market is open, realising a gain or loss based on the sell price relative to their entry cost. The sell price is affected by the redeem tax. Learn more about it in [Selling an outcome](/getting-started/publish-your-docs/trading-eventcoins/selling-an-outcome.md#sell)

#### Resolution & Payouts

When the market resolves, the correct outcome is confirmed. The entire pool flows to holders of that outcome's tokens, distributed proportionally by token share.

```
Your Payout = (Your tokens in winning outcome / Total tokens in winning outcome) × Total Pool
```

{% endtab %}

{% tab title="How price markets work" %}
Price Markets are a structured, time-bound market type focused on **asset price ranges**. Rather than asking whether something will happen, they ask where an asset's price will land within which discrete range at a fixed point in time.

Unlike Regular Markets, Price Markets follow a strict round schedule. Prices of outcomes are based on a time-based pricing curve, and exits are not allowed.

#### Outcomes & Structure

Each Price Market round is divided into **discrete price ranges** for a given asset. Participants mint outcome tokens for the range they expect the asset to land in at resolution. As with Regular Markets, the pool is shared across all ranges and flows entirely to the winning range at resolution.

Rounds follow a fixed, repeating 8-hour schedule:

| Phase                    | Duration | What Happens                                              |
| ------------------------ | -------- | --------------------------------------------------------- |
| **Trading Phase**        | 4 hours  | Market is open. Enter and build your position             |
| **Settlement Window**    | 4 hours  | Trading closes. Price is observed, payouts are calculated |
| **Total Round Duration** | 8 hours  | From open to resolution                                   |

Each round targets the asset price **8 hours ahead** of its opening time. New rounds open continuously — as one round enters settlement, the next opens for trading.

```
00:00  →  Round opens. Trading phase begins.
04:00  →  Trading phase ends. Settlement window begins.
08:00  →  Target time reached. Price is observed.
08:15  →  Round resolves. Payouts are distributed.
```

#### Pricing: Clock Curve

Price Markets use a **clock curve.** Token cost is a function of **how much time has elapsed** in the round, not how many tokens exist.

> The closer you are to the resolution deadline, the more expensive outcome tokens become, regardless of how many have been minted.

This means:

* **Early entrants** pay less for the same outcome token
* **Late entrants** pay a premium, reflecting the reduced uncertainty closer to resolution
* Price is deterministic and time-driven — it cannot be moved by other participants' activity

#### Position Lock

Once a position is minted in a Price Market, **it cannot be sold.** Tokens are locked until the round resolves.

This is an intentional design constraint. Combined with the clockCurve, it ensures:

* No value leakage from early exits
* Payouts reflect committed conviction, not late repositioning
* The pool remains intact for winners at resolution

#### Resolution & Payouts

At the target time, the asset's market price is observed. The round resolves to whichever range contains that price. The entire pool flows to holders of that range's outcome tokens, distributed proportionally.

```
Your Payout = (Your tokens in winning range / Total tokens in winning range) × Total Pool
```

{% endtab %}
{% endtabs %}


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