MGBX Event Contracts Product Description & Rules

1. Product Overview

Event Contracts is an innovative and simplified trading product launched by MGBX. Users do not need to configure leverage, margin, or complex parameters — simply predict whether the price of a specified asset (e.g. BTC, ETH) will go up or down within a set timeframe to participate. The product is designed to be straightforward and intuitive, suitable for all types of users.

2. Key Features

• Simple Up/Down Prediction:
  Users select an "Up" or "Down" direction — no leverage or position sizing required

• Automatic Settlement:
  Contracts are automatically settled against the MGBX price index upon expiry — no manual action needed

• No Liquidation Risk:
  No leverage, no margin calls. Maximum loss is limited to the amount paid when purchasing the contract

• Flexible Expiry Cycles:
  Choose from multiple expiry timeframes ranging from 15 minutes to daily, allowing you to trade around market events

• Low Entry Barrier:
  Minimum trade size is 5 USDT, making it accessible to beginners and small-scale participants

• No Early Closure:
  Positions cannot be closed before contract expiry; the system will automatically settle profits and losses upon maturity.

3. Contract Pricing & Profit/Loss Explanation

Event Contracts operate on a binary settlement mechanism. Users predict whether the underlying asset's price will be "Higher" (Up) or "Lower" (Down) at the time of contract expiry.

Settlement Rules:

Profit/Loss Example:

• A user invests 100 USDT to purchase an "Up" contract

• At expiry, if the price rises (correct prediction): 100 USDT principal returned + 80 USDT profit = 180 USDT total

• At expiry, if the price falls (incorrect prediction): Full 100 USDT principal is forfeited — 100% loss

4. Trading Mechanism

1. Position Modes

• Open/Close Mode:
  Within the same event contract market, users may simultaneously hold both "Up" and "Down" positions. Full margin is required for all held contracts

• Buy/Sell Mode:
  Within the same event contract market, users may only hold a one-sided position (Up or Down)

1. Order Rules

• Event contracts are priced and executed directly based on the mark price

• Users may cancel an order at any time before it is fully filled. For partially filled orders, only the unfilled portion can be cancelled; the filled portion cannot be reversed

1. No Liquidation Mechanism Event Contract positions cannot be forcibly liquidated and do not participate in account-level liquidation processes.

5. Settlement Rules

• Contracts are automatically settled against the MGBX price index upon expiry

• Correct prediction:
  Full principal returned + 80% of principal credited as profit

• Incorrect prediction:
  Full principal forfeited; contract value becomes zero

• No fees of any kind are charged during the settlement process

• Settlement results are based on the MGBX price index at the time of expiry — transparent, publicly available, and immutable

6. Supported Account Types

• Futures Account Mode

• Multi-Currency Account Mode

• Portfolio Margin Mode

• Spot Account Mode is not supported

7. Risk Disclosure

1. Event Contracts are high-risk financial products. Prices can be highly volatile. Users are advised to fully understand the product rules before participating

2. Maximum loss is limited to the amount paid at the time of purchase and will not exceed the principal

3. This product does not constitute investment advice. Users must independently assess their own risk tolerance

4. MGBX reserves the right to suspend or adjust contracts in the event of market anomalies, system failures, or force majeure circumstances

5. If users are found to engage in market manipulation, wash trading, or other prohibited activities, MGBX reserves the right to cancel relevant transactions and freeze the associated account

8. Disclaimer

This product description is provided for informational purposes only and does not constitute investment advice. Crypto asset trading carries significant risk. Users are encouraged to fully understand the product rules and associated risks before participating. MGBX reserves the final right of interpretation of these product terms.