Explanation

Forks and resolution in Trading

A pair closes when its market can no longer be traded safely, but it never traps a position. This page explains which events close it and what a holder does next.

What closes a pair

Swaps, initialization, and added liquidity close permanently at question end, when the universe forks, or when the SecurityPoolForker exposes a final outcome. They are also blocked while the SecurityPool is not operational or is awaiting fork continuation. LP removal deliberately has none of those guards. tradingStatus() reports which condition applies.

After a fork

  1. LP → Parent pair: removeLiquidity()
  2. Parent pair → LP: parent Yes + No
  3. LP → ShareToken: migrate(fromId, chosen outcomes)
  4. ShareToken → LP: selected child shares
  5. Wait until migration and any Collateral Repair Auction return the child pool to Operational
  6. LP → Factory: createPair(exact child pool)
  7. Factory → LP: isolated child pair
Carrying liquidity across a fork. Every step is the LP's own decision; nothing here happens automatically.

A fork does not select a branch or migrate LP. A child pair can be initialized only if the child SecurityPool is back to Operational before the question's end date, which requires a fork caused by another question: pairs refuse initialization and swaps once the question has ended, and a fork caused by disputing this question always comes after its end date. Parent and child pools may share one ShareToken contract, but they have different universe-specific token IDs and different pair addresses. Handle a universe fork gives the step-by-step procedure.

After resolution

  1. Pair → Forker: getQuestionOutcome(pool)
  2. Forker → Pair: current Yes / No / Invalid outcome
  3. Pair → Pair: swaps and additions closed
  4. Holder → Pair: removeLiquidity remains available
  5. Pair → Holder: raw Yes + No
  6. Holder → SecurityPool: redeemShares() for the winning token
  7. SecurityPool → Holder: current collateral value
Settling after resolution. The pair only closes; value is redeemed at the SecurityPool, never at the pair.

If the question resolves Invalid, the Invalid shares held in the wallet are the settlement insurance. Fee growth in the pair's Yes and No reserves creates no redemption value on an Invalid result. Handle resolution gives the procedure.