Positions & Outcome Tokens

Understand outcome tokens, Event Contracts positions, position value, and PnL calculations.

Every outcome in an Event Contract is represented by an outcome token. Trading essentially means buying or selling these outcome tokens; a position in a Market is the user’s balance of the corresponding outcome token.

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Outcome Tokens

A binary Market typically contains two outcome tokens:

Token	Redeemable for 1 USDT When	If the Outcome Loses
Yes	The event occurs	Becomes worthless
No	The event does not occur	Becomes worthless

Outcome tokens use the Gnosis Conditional Token Framework (CTF) and exist as ERC-1155 assets.

Each Yes / No outcome pair is fully collateralized. One Yes + No pair in the system corresponds to 1 USDT of collateral.

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Trading

Most users build or reduce positions by buying and selling outcome tokens through the order book.

• Buy 1 Yes at $0.60: pay $0.60 and receive 1 Yes Token.
• Sell 1 Yes at $0.60: transfer 1 Yes Token and receive $0.60.
• Before settlement, a position can be exited by selling whenever liquidity is available.

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Redemption

After a Market settles, winning outcome tokens can be redeemed for USDT:

Settlement Result	Yes Token	No Token
Event occurs	Worth $1 each	$0
Event does not occur	$0	Worth $1 each

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Position Value

The current value of a position depends on the token balance and market price:

Position Value = Token Quantity × Current Price

For example, if you hold 100 Yes shares and the current price is $0.75:

Position Value = 100 × $0.75 = $75

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Profit and Loss

Final PnL depends on the entry cost, exit price, or the Market’s final settlement result.

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Example: Buy Yes at 0.40

Scenario	Result	Value Recovered per Share	PnL per Share
Event occurs	Yes wins	$1.00	+$0.60 (150%)
Event does not occur	No wins	$0.00	-$0.40 (-100%)

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Sell Before Settlement

You can also exit before settlement:

• buy Yes at $0.40;
• the market price rises to $0.70;
• sell at $0.70, realizing $0.30 profit per share.