Triple-Market Architecture

Spot Market

The spot market on 1024EX provides real-time liquidity for immediate asset exchange. It is designed for efficient price discovery, low slippage, and tight integration with the rest of the 1024 ecosystem. Spot trading is the foundation for hedging, rebalancing, and capital deployment.

Perpetual Contracts Market

The perpetual contracts market enables on-chain leveraged trading via non-expiring perpetual futures. It supports both retail and quantitative workflows with predictable execution, a risk engine, and funding-rate mechanisms. Perpetuals are used to express directional views, manage exposure, and build derivatives-driven strategies that pair naturally with spot and prediction markets.

Prediction Market

The prediction market enables trading on future outcomes using probability-priced contracts. These markets aggregate information into an implied probability, providing a forward-looking signal that complements traditional price markets. Prediction contracts can be used for forecasting, scenario hedging, and identifying cross-market inefficiencies.

Using all three markets together

The strength of 1024EX comes from treating spot, perpetuals, and prediction markets as one unified architecture. Each market reflects a different dimension of expectations:

Spot reflects the current price.
Perpetuals reflect leveraged forward expectations through basis and funding.
Prediction markets reflect the probability of discrete future outcomes.

When combined, these layers unlock strategy design space that is difficult to achieve with any single market.

Cross-market pricing relationships

Because each market processes information differently, prices do not always move in perfect alignment. These gaps can form actionable signals:

Spot ↔ Perpetuals: funding and basis reflect leverage demand and positioning.
Spot ↔ Prediction: spot prices update continuously, while prediction probabilities can reprice sharply on new information.
Perpetuals ↔ Prediction: perp basis reflects expected drift, while prediction contracts price discrete event probabilities.

Discrepancies across these layers can be monitored and traded systematically.

Example strategy categories

1. Mispricing arbitrage (spot + prediction, or perp + prediction)

When prediction-implied probabilities diverge from what spot or perps imply, traders can construct low-risk or delta-neutral structures:

Buy underpriced prediction contracts.
Hedge directional exposure using spot or perpetuals.
Capture convergence as pricing normalizes.

Best for: event-driven traders, market-neutral funds, automated execution systems.

2. Basis and probability spread trading

Perpetuals often trade at a premium or discount (basis) relative to spot due to funding dynamics. Prediction contracts may imply a different forward expectation.

Common structures include:

Long perp / short prediction when basis implies stronger drift than outcome probability.
Long prediction / short perp when probability implies more upside than perps price.

This expresses a spread between forward expectations (probability) and leveraged expectations (basis/funding).

3. Scenario hedging and tail protection

Prediction contracts can hedge specific thresholds or states (for example, “BTC above 60k by Friday”). Traders can overlay prediction positions onto spot or perp portfolios to:

Hedge tail risks tied to defined scenarios.
Add conditional exposure that only pays off if the event occurs.
Reduce downside while maintaining core positioning.

This can serve as a practical alternative to options-style payoff shaping for discrete outcomes (where markets exist and resolution rules are clear).

4. Leveraged outcome amplification

By combining:

Spot for base exposure,
Perpetuals for adjustable leverage,
Prediction contracts for event-driven multipliers,

traders can create payoff curves similar to structured products:

Digital-like payoffs,
Range-style expectations,
Conditional leverage that activates only if a scenario occurs.

5. Tri-market statistical arbitrage

Quant systems can continuously observe:

Spot microstructure and mid-price deviations,
Perp funding and basis shifts,
Prediction probability updates.

Common approaches include:

Cross-market mean reversion,
Lead-lag detection (prediction markets may reprice faster on certain news),
Volatility and regime inference using probability drift.

This category is well suited for systematic research and automated execution.

6. Liquidity and execution optimization

Liquidity conditions vary by market. Traders can:

Enter exposure in the most liquid venue (often spot or perps),
Hedge or express conditional views using prediction contracts,
Rebalance dynamically as implied probabilities and basis shift.

This approach can reduce market impact while improving informational efficiency in execution.

Why the triple-market architecture matters

Integrating spot, perpetuals, and prediction markets creates a multi-layer trading environment that is:

Rich in signals (price, basis/funding, probability)
Deep in liquidity (multiple venues for expressing views)
Diverse in payoff structures (continuous and discrete outcomes)
Naturally suited for algorithmic and quantitative strategies

This turns 1024EX into a full-spectrum market system for trading, hedging, and research workflows that benefit from cross-market interactions.