◇ GLOSSARY
Event contract
A derivative that pays a fixed settlement — often $0 or $1 — based on whether a defined event occurs by a set date. Payout is bounded; you are not marking open-ended delta to a coin price. Regulated U.S. prediction markets list these; they are not the same product as a BTC perp.
An event contract asks a yes/no question: rate cut by June, CPI above 3%, candidate wins. You buy at 42¢ implying 42% probability; it settles at $1 or $0. There is no funding, no liquidation engine on mark — you can lose the premium, not an open-ended margin call on spot BTC.
Perps give continuous delta to an asset with no expiry and a carry schedule. Event contracts give discrete payoff on a calendar. The margin math, tax treatment, and counterparty differ by jurisdiction.
When headlines say 'prediction market,' check the contract spec. Event contracts and perps can sit on the same brand and still be different animals.