TACO stands for Trade Any Claim Onchain. A claim can be an event outcome, such as YES on a question, or a price view, such as long exposure to an oracle-priced market.TACO markets are designed to be onchain markets rather than centralized order books. Users interact with smart contracts for trading, liquidity, creation, and settlement.
Collateral is the token you deposit to trade, provide liquidity, pay bonds, or mint test balances. In production markets this is usually a stable asset such as USDC. Local and testnet environments may use mock collateral.
Event markets use YES and NO shares. If YES wins, YES shares redeem for collateral and NO shares settle to zero. If NO wins, the reverse happens. Some invalid or special outcomes can use a split payout, depending on the market rules.
Price markets use long and short positions. A long benefits when the oracle price rises. A short benefits when it falls. Leverage amplifies both gains and losses.Price markets support separate positions and same-direction merged positions. Some deployments also support user-owned margin accounts. Always check which mode the app is using before you compare entry price, leverage, or health across positions.
Liquidity providers supply capital behind markets. In event markets, LP capital sits in risk tranches with different exposure depths and fees. In price markets, LP capital backs the shared collateral pool and may opt into fee rewards.
Price markets depend on price oracles. Event markets depend on a resolution process that can include proposal, challenge, and finalization. Both systems can affect when trading is available and how value is paid out.
Portfolio views combine data from multiple market types. Always check the connected chain, market status, collateral token, and whether a view depends on an indexer or live contract reads.
