The Responsible Trading Code of Conduct
Nine standards that an Adopting Exchange commits to uphold. The Code targets gambling-like behavior — a pattern of participation, not a product classification — and extends the CFTC's existing core principles rather than proposing a new regulatory regime.
The Code addresses gambling-like behavior — a pattern of participation, not a product classification. Its nine sections build on existing CFTC core principles, extending Core Principle 4 (trading standards and market oversight) and Core Principle 12 (protection of market participants) to the realities of retail event contracts. An Adopting Exchange commits to uphold every section — and to be held to it.
- 01
Education and expectations
No one begins trading without understanding the economics: the risk of loss, that these are zero-sum markets after fees, and plain-language explanations of pricing, probability, and maximum loss.
- 02
Marketing
Prediction markets are presented as serious, risk-bearing financial products. No free-money or risk-free claims, no promotions tied to recent losses, no targeting of youth or users showing signs of harm, and full disclosure of paid partnerships.
- 03
User interface
Interfaces are designed for deliberate decisions: clear money-at-risk, P&L, and settlement rules; no casino-style celebration, near-miss design, or artificial urgency; and added friction after rapid deposits or large losses.
- 04
User controls
Deposit, loss, and exposure limits, time reminders, cooling-off, and self-exclusion are easy to find — immediate when tightened, delayed when loosened — with no marketing during a period of exclusion.
- 05
Incentives
Incentives are opt-in with clear terms and are never triggered by losses. No VIP programs that reward losses or escalating deposits, and no structures that require excessive volume.
- 06
Contract design
Contracts with very short duration, high repeatability, or casino-like feedback loops receive extra review, and are listed only with documented justification or offsetting protections.
- 07
Monitoring and intervention
Documented, tiered responses to loss-chasing and escalation patterns — from reminders, up to suspending promotional outreach and proactive contact with the user.
- 08
Metrics and accountability
Exchanges track responsible-trading metrics, share them with their regulator at a minimum, and obtain periodic independent attestation.
- 09
Age and access
Categorical: sports event contracts are restricted to users 21 and older, verified before any deposit or trade, even where federal law would permit 18.
Adoption is open
Any exchange can adopt the Code and commit publicly to its nine standards. As exchanges sign on, they will be listed here.
Trade on a platform that follows the Code.
Help shape future revisions as a member of the Union.