> If the expiration is part of the contract, then it's a derivative contract. In this case you have only 2 outcomes: either you get paid 1 basiscoin, or your "bond" expires worthless after 5 years and you get nothing. That's why it's a binary future. Binary futures/options and prediction markets are illegal in US since they resemble gambling.

Sounds like credit default swaps ... you pay a premium until expiration (you get nothing) or some credit event happens (e.g. default; you get a payout). Difference seems to be the conditions for a payout.