How Does a Futures Contract on a Potential Hard-Forked Coin Work?

Before a controversial hard fork, some exchanges offer "fork futures" or "IOU" contracts for the potential new coin. These contracts allow traders to speculate on the future price of the new coin before it even exists or is officially listed.

They provide a mechanism for price discovery and allow token holders to hedge their risk or profit from the market's expectation of the fork's outcome.