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Split & Merge

Split and Merge are fundamental operations in prediction markets that allow you to convert between USDC and outcome shares directly through the Conditional Token Framework (CTF) smart contract.

#Split (USDC to Shares)

Splitting converts USDC into equal quantities of all outcome shares for a given market.

  • Binary market: 1 USDC splits into 1 YES share + 1 NO share
  • Categorical market: 1 USDC splits into 1 share of each outcome

#Why Split?

  • Directional trading — Split, then sell the side you disagree with. For example, if you are bullish, split USDC and sell your NO shares.
  • Arbitrage — Exploit price discrepancies when the combined price of all outcomes deviates from $1.00.
  • Market making — Acquire shares on both sides to provide liquidity.

#How to Split

  1. Go to the market trading page.
  2. Select the Split tab.
  3. Enter the USDC amount you want to split.
  4. Review the shares you will receive (equal quantity of each outcome).
  5. Confirm the transaction.

#Merge (Shares to USDC)

Merging is the reverse of splitting. It combines equal quantities of all outcome shares back into USDC.

  • Binary market: 1 YES share + 1 NO share merges into 1 USDC
  • Categorical market: 1 share of each outcome merges into 1 USDC

The shares are burned and USDC is returned to your Trading Wallet.

#Why Merge?

  • Exit a position — Close out without going through the orderbook.
  • Lock in profit — If you hold shares on both sides and want to convert back to USDC.

#How to Merge

  1. Go to the market trading page.
  2. Select the Merge tab.
  3. Enter the number of share sets to merge. This is limited by your smallest holding across all outcomes.
  4. Review the USDC you will receive.
  5. Confirm the transaction.

#Key Points

  • Split and Merge operations interact directly with the CTF smart contract on-chain.
  • No fees are charged on split or merge operations.
  • The 1:1 ratio is always maintained — 1 USDC always equals 1 complete set of outcome shares.
  • These operations are independent of the orderbook and execute at a fixed rate regardless of market prices.
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