An event market is a question with YES and NO outcomes. You buy shares of the outcome you think is underpriced, or sell shares when you want to reduce exposure.Prices are shown like implied probabilities. A YES price near 60 cents means the market is pricing YES around 60%, before fees and execution effects.Event markets do not need a centralized order book. Active markets can trade around the clock through onchain liquidity until trading is restricted by market status, resolution, or chain conditions.When a trade executes, the contract mints or transfers the outcome shares for the filled amount. You do not need to wait for another trader to post a matching order.
Each event market uses collateral, such as USDC in production deployments or mock collateral in local and testnet environments. The protocol can split one unit of collateral into one YES and one NO share, and merge matching YES/NO shares back into collateral.As a normal trader, you do not need to manage this accounting manually unless the app exposes split or merge actions for your workflow.After resolution, winning shares redeem against the market’s locked collateral according to the final payout rule. Losing shares settle to zero unless the market uses an invalid or split payout rule.
Event liquidity is organized into tranches. A tranche is a layer of LP capital with its own fee rate and risk depth.Shallow tranches are designed to stop absorbing flow earlier. Deeper tranches can continue supporting the market later, but they take more tail risk. This creates a waterfall-style liquidity structure.
Event markets have protocol price boundaries. If a trade would push the market beyond its configured limit, only the fillable part executes and the rest is left unfilled or refunded by the transaction path.This protects LPs in extreme market states and keeps the market from quoting unlimited tail exposure.Partial fills are expected in thin or one-sided markets. Check the received shares and refunded collateral after large trades.
After the event ends, the market moves through resolution. Once finalized, winning shares can redeem for collateral according to the payout rule. LP settlement is handled separately from trader share redemption.
