Key Concepts
Outcome Tokens
Every market has two outcome tokens: YES and NO. They are ERC-1155 tokens, fully collateralized.
Minting: Deposit 1 unit of collateral → receive 1 YES + 1 NO token. Tokens are always minted as a pair.
Merging: Return 1 YES + 1 NO → get your collateral back. Available anytime before resolution.
Redemption: After resolution, winning tokens redeem 1:1 for collateral. Losing tokens are worthless.
Since YES + NO always equals 1.00 of collateral, prices on the orderbook represent implied probabilities. A YES token trading at 0.65 implies a 65% probability of the outcome occurring.
Ticks
Prices on the orderbook use a tick system: 99 discrete price levels from 0.01 to 0.99, at 1-cent granularity. You can place orders at any tick.
Batch Intervals
The orderbook doesn't match orders continuously. Instead, orders accumulate and are matched every batch interval (~3 seconds by default). This is configurable per market.
Clearing Price
Each batch that has crossing orders (bids ≥ asks) produces a single uniform clearing price. This is the tick that maximizes total matched volume. All fills in that batch happen at this price.
Pro-Rata Fills
If one side of the book has more volume than the other at the clearing price, the oversubscribed side is filled pro-rata — proportional to each order's size. No single order gets priority within a batch.
Order Types
Limit
Rests on the book until filled, cancelled, or expired
Post-Only
Rejected if it would immediately cross the book (maker protection)
IOC
Fills in the current batch or is cancelled — never rests
Batch-Only
Valid for the next batch only, auto-expires after clearing
Collateral
All orders are fully collateralized. When you place a bid (buy YES), you lock collateral. When you place an ask (sell YES), you lock YES tokens. There is no leverage or margin.
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