Event contract settlement
Settlement is the process of finalizing an event contract's outcome.
The Timeline section of the event detail page includes the following key dates.
The payout date and the date funds are available for withdrawal aren't the same. Proceeds from payouts are generally available for withdrawal within 1 business day of settlement.
Settlement timing depends on when the event concludes and how long the exchange takes to process the final result.
Settlement doesn’t occur immediately after an event concludes as the outcome needs to be officially verified first. In certain cases, an outcome that appeared certain could be overturned or changed. Settlement ensures official outcomes are final before providing a payout to the winner.
The speed at which this happens can vary by the event:
A presidential election is held on a single day in November, but in some cases the result may not be confirmed until after Election Day. If you hold an election contract until final settlement, that means that you might have to hold the contract for some period of time after Election Day. You can learn more about the resolution criteria by selecting the “contract terms and conditions” link under the About section for each event contract.
After settlement, you will see the money reflected in your account balance.
Note that your money may not be available to withdraw the same day. You’ll typically need to wait 1 business day before you can withdraw the money or use the funds to trade stocks, options, or crypto. Keep in mind that processing times may vary and holidays and weekends may extend this time.
If your funds aren’t available for use after 2 business days, check your account history first. Go to Account, select History, and filter by Event contracts to locate the contract payout and confirm when the event settled.
Every event contract settles according to the exact terms set for that specific contract. Robinhood doesn't determine the official settlement rules. These terms are determined by the exchange partner that offers the event contract and include when and how the outcome is confirmed.
You can always review the specific rules for your contract by going to the event detail page and reviewing the terms and conditions under the About section.
All event contract positions settle in cash. There's no physical delivery.
How an outcome is determined is always according to the contract’s specific terms. Contracts resolve based on the defined data source, the specified measurement method, and the final published value.
For events where multiple data sources exist, it’s important to know which exact source is being used to determine an outcome.
To find the data source used for a particular event contract, review the terms and conditions under the About section on the event detail page.
A weather contract might ask whether a city's high temperature will be above 90°F. Your own weather app might show 91°F for that day, while another site shows 89°F. Neither of those readings necessarily settles the contract. The contract's terms specify one official data source, and only the value reported by that source will determine the outcome.
To view settled contracts and your payout history, go to Account, select History, and filter by Event contracts. The payout description in your order history confirms the position has been resolved and proceeds have been processed.
Your predicted outcome didn't occur. The exchange partner determines the official result based on the settlement terms defined for that event. To review the settlement terms for a specific event, go to the event detail page and review the About section.
Your predicted outcome did occur. The exchange partner determines the official result based on the settlement terms defined for that event. To review the settlement terms for a specific event, go to the event detail page and review the About section.
If the outcome lands exactly at the threshold, settlement depends on whether the contract uses a strict inequality (greater than, >) or an inclusive inequality (greater than or equal to, >=). Refer to the contract's About section for the authoritative definition.
For standard binary payouts, fractional contract proceeds round down to the nearest cent. For example, 0.05 contracts pay $0.05 at a $1 settlement. For nonstandard payouts, proceeds may also round down.
0.05 contracts at a $0.752 nonstandard settlement would pay $0.03 (0.05 x $0.752 = $0.0376, rounded down to $0.03).
All legs of a combo must resolve in your favor for the combo to settle at $1. If any leg doesn't pay, the combo settles at $0.
In some instances, standard settlement doesn’t apply. For example, when a professional football game ends in a tie but the event contracts were to be settled against a winner and a loser.
Possible nonstandard outcomes and the result:
A tie or a draw in a boxing or pro football match: Payout is typically $0.50 to both sides
A walkover in a tennis match: Payout may be resolved by using:
a. The last traded price before the walkover was announced
b. Or the market may resolve to No for the player that withdrew
A golfer withdraws due to injury: Payout typically resolves to No
A hockey overtime loss: Payout typically results in the contract Yes or No outcome, there’s no exception for a loss in overtime
Always review the About section and terms and conditions for your contract to understand how nonstandard outcomes are handled before you trade.
If an event is canceled before or during trading, the exchange partner determines how contracts settle. This may result in a $0 settlement, a settlement at the last traded price, or another type of nonstandard payout. Robinhood can't change or modify these settlement outcomes.
If a player doesn't participate in the event, their contract may be voided or settle at a fallback value (for example, $0.50) as determined by the exchange.
If 1 leg in a combo has a nonstandard payout and all other legs resolve correctly, the maximum payout per contract for the entire combo is the nonstandard payout amount. If multiple legs have nonstandard payouts, the final payout is calculated by multiplying the payout value of each leg. For example, if legs 1 and 2 each have a nonstandard payout of $0.50 and legs 3 and 4 settle at $1, the per-contract payout is $0.25 ($0.50 x $0.50 x $1 x $1).
If you transfer your account to another brokerage firm, your open event contract positions aren't transferred. Positions are held until expiration or settlement, and proceeds transfer to your other account after settlement is complete.
Sometimes the wording of a market can be interpreted in more than one way. If that happens, the exchange can issue a clarification explaining how it will handle the situation. In these cases, trading may be paused briefly.
If a market is tied to an individual, the exchange takes extra care to avoid any appearance of profiting from that person's death or injury. In those cases, the market is settled based on the last fair price recorded before the event happened.
Restrictions and eligibility requirements apply. Futures, options on futures, and cleared swaps trading involves significant risk and is not appropriate for everyone. Carefully consider if it's appropriate for you in light of your personal financial circumstances. Displayed prices are based on real-time market sentiment.
Read the Event Contracts Risk Disclosure for more information about the risks associated with event contracts.
Futures, options on futures and cleared swaps trading is offered by Robinhood Derivatives, LLC, a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA). Event contracts are offered by Robinhood Derivatives, LLC through either KalshiEX LLC, ForecastEX, LLC or Rothera Exchange and Clearing LLC.
Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC.