HedgeTrade was designed for amateur traders looking to make the same trades as experts. Those expert traders are incentivized to post high-quality, accurate predictions, because if their prediction is correct, they earn proceeds from the users who purchased it. If the prediction is incorrect, the purchasers get a refund.
The steps below illustrate how the platform works:
Step 1: Get HEDG Tokens
Traders and Users purchase tokens with bitcoin on the platform. Alternatively, Users can acquire HEDG tokens from an exchange of their choice.
Step 2: Stake HEDG Tokens and Create Blueprint
Traders stake HEDG tokens when they create their trading prediction or "Blueprint" on the HedgeTrade platform.
Step 3: Users Unlock Blueprint and Await Expiry
Users can unlock the prediction details by purchasing the Blueprint with HEDG; they will then wait for the Oracle to resolve the Blueprint at the time of expiry.
Step 4: Blueprint Outcome
The HEDG tokens are automatically distributed to the Trader if the Blueprint is correct. If the Blueprint is incorrect, the tokens are returned to the User.