Guide · Event contracts
Event contracts
for brokers.
Event contracts are one of the fastest-growing instruments in retail trading. This guide explains what they are, why brokers add them, how they compare with the products you already offer, and what it takes to launch them under your own brand.
01What an event contract is
An event contract is a YES/NO contract on the outcome of a real-world event. "Will the Fed cut rates at its next meeting?" "Will BTC close above a given level this week?" "How many Starship launches reach space in 2026?"
Each contract pays a fixed amount if the outcome happens and nothing if it doesn't. It trades between 0 and 100 cents, so its price reads directly as the market's probability: a YES at 64¢ means the market prices the outcome at roughly 64%. Clients can buy YES or NO, close early at the current price, or hold to settlement.
02Why brokers are adding them
- New revenue on existing engagement. Your clients already follow macro, crypto, elections and sports. Event contracts let them act on those views inside your product, and you earn commission on each trade.
- Nothing new to teach. Clients trade them on a central limit order book with limit and market orders, the same mechanics they already know.
- Simple risk for the client. The most a client can lose is what they paid for the contract. There is no leverage and no margin call.
- No market risk for the broker, when contracts are peer-to-peer and fully collateralised: you are never the counterparty.
03How they compare with CFDs and options
| CFDs | Options | Event contracts | |
|---|---|---|---|
| Underlying | A price | A price | An outcome: a price level, a decision, a result |
| Client's maximum loss | Can exceed the deposit without protections | Premium (buyer) | The price paid |
| Leverage | Typical | Implicit | None |
| Pricing for the client | Spread, swaps | Greeks, volatility | A probability between 0 and 100¢ |
| Broker counterparty risk | Often, if internalised | Depends on venue | None on a peer-to-peer, fully collateralised book |
Event contracts don't replace your existing products. They add an instrument that is easy to explain, capped in risk, and tied to topics clients already follow.
04Three ways to add them
1. Build an exchange
Build the matching engine, collateral and settlement, oracle resolution, event operations and market data; arrange liquidity; and obtain a licence. It gives full control, but it's a multi-year programme with fixed costs before the first trade. See build vs buy.
2. Refer clients to a consumer venue
Fast, but the client relationship, the data and most of the revenue leave your product.
3. White-label infrastructure
Offer event contracts in your own app on infrastructure someone else runs. With TIE that means a proprietary CLOB, liquidity from day one, the Polymarket catalogue plus crypto and custom events, and a licensed wrapper in Mauritius or Costa Rica. See the white-label platform.
05How brokers earn from event contracts
On TIE, setup, integration and the monthly platform fee are $0. TIE earns an execution fee on executed trades only, agreed on a scoping call. You set your own client commission and keep 100% of it, so your margin is entirely in your control and there is no fixed cost to recover first.
06Compliance and risk disclosure
Regulation of event contracts varies by country. With TIE, the operating structure is selected per broker during scoping. Latin America, selected Asia-Pacific markets, Africa and the Middle East are permitted; Europe is assessed case by case; the United States and sanctioned or restricted territories are excluded. Take your own legal advice for your markets.
Clients should understand that event contracts carry a risk of total loss of the amount committed. Build that disclosure into onboarding and the trade ticket.
07Launching with TIE
- Sandbox key within one business day. Full catalogue, seeded balances, benchmark harness, no contract.
- Integrate one REST API and one WebSocket against the public spec, with an engineer on call.
- Scope jurisdictions, catalogue, fees and a launch date in a 30-minute call.
- Go live under your brand, in weeks rather than months.
08FAQ
What is an event contract?
A YES/NO contract on the outcome of a real-world event. It pays a fixed amount if the outcome happens and nothing if it doesn't, so its price between 0 and 100 cents reads as a probability.
Do brokers take market risk on event contracts?
Not on TIE. Contracts are peer-to-peer and fully collateralised with no leverage, and the broker is never the counterparty to a client's trade.
How do brokers make money from event contracts?
Through the commission they charge clients. On TIE you set that commission and keep 100% of it; TIE earns an execution fee on executed trades only.
How long does it take to add event contracts?
Sandbox keys go out within one business day, and brokers integrating TIE go live in weeks rather than months.
Can a client lose more than they invest?
No. The maximum loss on an event contract is the price paid for it.
Thinking about adding event contracts? Request a sandbox key and we'll reply within one business day with access and integration notes.