How Trading works

From ETH to a directional position

Each ETH entry first creates a complete set: one Yes, one No, and one Invalid share. A market's trading pool, a Yes/No pair, is an automated market maker (AMM) that holds only Yes and No reserves. The router sends the unwanted directional share into the pair, receives more of the selected directional share, and returns the directional position and the Invalid share to the user. The Invalid share never enters the AMM; it remains a separate claim if the market later resolves Invalid.

What the prices mean

Yes and No prices are conditional on valid resolution. They describe the relative price of the two directional outcomes; they are not estimates of invalidity. Interfaces should therefore label the Yes and No values directly and present Invalid separately.

Spot prices come from current reserves and are not an oracle. Settlement uses the SecurityPool's resolved outcome, while solvency-sensitive REP/ETH operations use OpenOracle.

One pair per SecurityPool

Each SecurityPool maps to its own pair. Parent and child pools therefore have separate pairs, reserves, prices, and liquidity-provider tokens; liquidity, like everything else in a fork, is not copied between them.

Where to go next

Learn by doing

Your first Trading market and your first trade.

Get something done

Set up development, configure the UI, deploy the contracts, seed alternative odds, exit a position, remove liquidity, handle resolution, and handle a fork.

Understand the design

The two-way market, Invalid insurance, conditional pricing, the LP position, early-exit limits, forks and resolution, architecture decisions and limitations.

Look something up

Contracts, router, events, SDK, deployment configuration, invariants, units and rounding, and the security model.