Outcome token (YES/NO)

YES and NO are standard ERC-20 outcome tokens using 6 decimals, matching USDC precision. Each market has its own isolated YES/NO pair, meaning outcome tokens are only valid within their specific market.

Core Invariant - $1 Invariant

YES.totalSupply == NO.totalSupply == market.totalCollateral

_{PrediX Core Invarient}

Split - Mint YES + NO from USDC

You - deposit 100 USDC ──▶  Diamond - mint 100 YES──▶  You
                                     - mint 100 NO───▶  You

Atomic: all 3 steps in 1 tx.
No protocol fee. Gas is paid by the user by default; covered by sponsorship if eligible (applies to both account types).

When to use:

Market-making: sell YES and NO separately at prices > $0.50 each (average price > $1, capture the spread).
Arbitrage when YES + NO > $1 on the market.

Merge - Burn YES + NO → USDC

You  -burn 100 YES + 100 NO──▶  Diamond  -payout 100 USDC──▶  You

The reverse of split. Requires holding equal amounts of both tokens.

When to use:

You hold both YES and NO (from trading) and want to withdraw.
Arbitrage when YES + NO < $1.

Why YES + NO Always ≈ $1

Because split / merge create riskless arbitrage:

YES + NO > $1: Split 1 USDC → 1 YES + 1 NO → sell both for a combined total > $1 = profit. Many do this → price gets pushed down to ~$1.
YES + NO < $1: Buy 1 YES + 1 NO for < $1 → merge → 1 USDC = profit. Many do this → price gets pushed up to ~$1.

Arbitrage is automated by AMM bots, requiring no manual intervention.

Redeem - After Market Resolution

Market resolves, e.g., outcome = YES.
User holding YES → calls redeem(marketId) → exchanges YES for USDC.
NO tokens → $0, cannot be redeemed or traded.

Refund - When a Market Cannot Be Resolved

If the oracle fails (down, dispute hung), admin enables refund mode via a 48h timelock:

Users burn YES + NO pairs → receive USDC pro-rata.
Burns at min(yesBalance, noBalance) - only the paired portion can be refunded.

Composable with DeFi

Since they are standard ERC-20, YES / NO tokens can:

Be added to other Uniswap pools (e.g., YES vs a custom token).
Be used as lending collateral (when lending protocols list YES/NO).
Serve as NFT mint conditions (mint when holding YES from a resolved-true market).
Power vault strategies (e.g., auto-merge when spread arbitrage is available).

ERC-20 standard → compatible with every DeFi protocol out of the box, no custom integration needed.

Encoding Details

Amount of 1 USDC = 1_000_000 (6 decimals base unit).
Amount of 1 YES = 1_000_000 (also 6 decimals).
Price $0.48 = 480_000 (fixed-point 6 decimals). Valid range: 10_000 to 990_000 (0.01 to 0.99).