Split & Merge

Split and Merge enable direct conversion between trading currency and Shares.

Split and Merge are powered by a Conditional Token Framework (CTF): direct conversion between collateral and Share pairs, with no orderbook fees.

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Split

Divides trading currency into Yes Shares + No Shares (or Up + Down Shares).

Conversion Formula

$1 → 1 Yes Share + 1 No Share (only one side settles at $1.00.)

Example

Splitting $100 yields:

• 100 Yes Shares + 100 No Shares

• Fee: None

Use Cases

• Hedge / Arbitrage: Split to hold both sides, then sell at favorable prices. Useful for hedging or capturing arbitrage spreads when Yes + No > $1.000

• Provide Liquidity: Place Limit Orders on both sides to earn Maker Rebate

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Merge

Combines Yes Shares + No Shares (or Up + Down Shares) back into trading currency.

Conversion Formula

1 Yes Share + 1 No Share → $1

Example

Merging 100 Yes Shares + 100 No Shares yields:

• $100

• Fee: None

Constraints

• Must hold equal quantities of Yes and No (or Up and Down) Shares

• Maximum Merge quantity = min(Yes Shares, No Shares)

Use Cases

• Position Exit: Convert Shares on both sides into trading currency instantly without the Orderbook

• Arbitrage: Buy both sides on the market for a combined price below $1.000, then Merge to capture the spread

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Split vs Merge Comparison

Field	Split	Merge
Direction	Currency → Shares	Shares → Currency
Input	Amount (integer)	Shares quantity (integer)
Output	Yes + No Shares (equal quantity)	Currency
Fee	None	None
Requirement	Sufficient balance	Equal quantity of Yes/No Shares held