> ## Documentation Index
> Fetch the complete documentation index at: https://dexbuilder.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# How Positions Work

> Understand Prediction Markets positions, outcome tokens, Position IDs, and redemption after market settlement.

A position in Prediction Markets is fundamentally an outcome token. Each market outcome corresponds to an identifiable Token. Buying that Token creates a position, which can later be redeemed according to the final market result.

## Outcome Tokens

Prediction Markets use the Conditional Token Framework (CTF) to represent different outcomes. A binary market typically contains two outcomes, such as `Yes` and `No`.

Each outcome token has a unique Position ID, which is also used as its on-chain Token ID. Most integrations do not need to calculate Position IDs themselves; they can use the `token_id` returned by the market API.

## Position ID Generation

The underlying Position ID calculation includes:

1. calculating `conditionId` from the Oracle, Question ID, and number of outcomes;
2. calculating the corresponding `collectionId` from `conditionId` and `indexSet`;
3. calculating the final `positionId` from the collateral asset and `collectionId`.

```solidity theme={null}
getConditionId(oracle, questionId, outcomeSlotCount)
getCollectionId(parentCollectionId, conditionId, indexSet)
getPositionId(collateralToken, collectionId)
```

For normal API integrations, these on-chain calculations are usually handled by the underlying system.

## Position Quantity

The account position API returns the current outcome-token quantity and distinguishes between:

* total position quantity;
* quantity locked by orders or the settlement process;
* quantity currently available to sell or use for other operations;
* average entry price;
* current position value;
* claimable amount after settlement.

## Market Settlement

After the market outcome is confirmed:

* winning outcome tokens can be exchanged for the corresponding collateral asset according to the settlement rules;
* losing outcome tokens become worthless;
* account fields such as `settlement_status`, `won`, and `claimable_amount` are updated.

## Redeeming Settled Positions

Before redemption, confirm that:

1. the Market has reached final settlement;
2. the current account holds the corresponding outcome token;
3. the position has a claimable amount.

We recommend using the Prediction Markets account and Claim-related APIs for the redemption flow rather than having a normal API integration construct the underlying contract transactions itself.

> [!NOTE]
>
> If you are using the DexBuilder API only to build a frontend or trading application, rely directly on the market's `token_id`, account positions, and Claim APIs. You do not need to implement CTF Position ID calculation yourself.


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