Policies Governing the Prediction Markets

The Sauder School of Business Prediction Markets is a research and teaching project. As such, we are governed by the rules set forth by the UBC Behavioural Ethics Research Board. Participants are required to read and accept the Subject Information and Consent Form prior to investing funds.

Eligibility

Because of regulatory and jurisdictional issues, participatpation in the Prediction Markets is only available to Canadian residents who are at least 19 years of age. In order to meet the residency requirement, participants must provide a Canadian mailing address where we will send cheques for divested funds. Traders must also provide a Canadian phone number where we can reach them. For educational purposes, minors may participate in this market under the supervision of a parent, legal guardian, or teacher.

Investments

The minimum investment amount per account is $25. The maximum investment amount per account is $1,000. We accept investments by cheque, credit card (Visa and MasterCard), and Interac. We strongly encourage the use of Interac as it economizes on UBC's coverage of credit card fees. Due to internal accounting procedures, investments made by credit card are subject to a minimum eight-week holding period; investments by Interac are not subject to this rule. To set up an account, follow the instructions on the "Login" to set up a trader account, and once a trader account has been set up, follow the instructions on the "Invest" page to make an investment. We also accept investments by personal cheque in Canadian Dollars drawn on a Canadian bank Traders must have set up a trading account before sending cheques to us. Cheques must be made out to "Sauder School of Business Prediction Markets" and must indicate the username (account number) of the trading account to which the funds are to be credited.

Market Liquidation

We strive to liquidate contracts in a prediction market as soon as possible after the market event (e.g., an election). Occassionally, close electoral results are subject to an automatic recount or may be challenged. In those case we need to wait for the final official electoral results. We do not liquidate election-based contracts on preliminary election-night results unless the results (e.g., a majority government outcome) cannot be changed due to a recount or legal challenge. In the event of a dispute over an event's outcome, the decision of the market director and the advisory board shall be final.

Divestment

Divestments (account withdrawals) are not automatic. Whereas its predecessor, the UBC Election Stock Market, operated only during an election and shut down afterwards, the Sauder School of Business Prediction Markets operate continuously. Therefore, we do not mail out cheques automatically after a specific prediction market has been liquidated. You need to specifically request a withdrawal (divestment) through the web interface to receive a pay-out. Otherwise we assume that you wish to retain your cash balance for trading in the remaining markets and contracts. After you submit a divestment request, it is queued for processing. We process divestment requests on a weekly basis (bi-weekly during low-activity periods). A cheque is then sent to the mailing address we have on file for you. Cheques are valid for six months after the date of issuing, so make sure to cash your cheque promptly. To economize on mailing costs, we do not issue cheques for less than $25 unless your account balance is below $25, and we do not issue cheques for less than $1.