Event liquidity is divided into tranches. A tranche is a layer of capital with a configured risk depth and fee rate.Lower-depth tranches are more conservative. They can drop out of the active set earlier when one side of the market is heavily bought. Higher-depth tranches keep supporting the market longer and may earn higher fees, but they carry more tail risk.
When you add liquidity to an event tranche, you receive shares in that tranche. Your share balance represents your claim on that tranche’s assets and accumulated LP fees.New liquidity must fit the tranche’s current accounting rules. The app may route through helper actions to make this simpler.
Removing liquidity burns tranche shares and returns your proportional assets according to the current state. Depending on the market, you may receive collateral and outcome tokens rather than only collateral.Recent deposits may be subject to a lock period.
After an event is finalized, each tranche settles according to its assets, fees, shares, and the final payout rule. LP settlement is separate from trader redemption of YES/NO shares.
