Positions
A position is your ownership of outcome tokens for a given market. Outcome tokens are ERC-1155s issued by the Gnosis Conditional Token Framework — splittable, mergeable, and redeemable for collateral after resolution.
A position is the set of outcome tokens (YES or NO, or one of N for a market group) you hold for a given market. Positions are ERC-1155s issued by the Gnosis Conditional Token Framework (CTF).
When you buy YES on a binary market, you receive YES outcome tokens. When the market resolves YES, every YES token redeems for one unit of collateral (USDC); NO tokens redeem for zero. Same shape for market groups, but with N outcomes instead of two.
Position primitives
| Action | What it does |
|---|---|
| Split | Lock collateral, receive matched YES + NO outcome tokens (one of each) |
| Merge | Burn matched YES + NO pairs, recover the underlying collateral |
| Redeem | After resolution, exchange winning outcome tokens for collateral at the resolved payout ratio |
| Convert (NegRisk only) | In a market group, swap NO tokens across multiple sibling markets into YES tokens of the complementary markets + collateral returned |
split and merge are pre-resolution liquidity primitives — they're what the matching engine uses internally for Mint-to-Fill and Merge-to-Fill paths. You can also call them directly to hedge or to rebalance.
redeem is post-resolution. The CTF reads the payout vector reported by ResolutionFacet.reportResolution (UMA) or PythResolutionFacet.resolvePriceMarketPyth (Pyth) and pays out accordingly.
NegRisk conversion
For market groups (N mutually-exclusive outcomes), holders of NO positions across multiple siblings can convert them into YES positions in the complementary markets, plus collateral returned. This keeps prices consistent across the group.
The math for a group with N total markets, converting amount NO tokens from noCount different markets:
- Output: YES tokens for the remaining
N − noCountmarkets +(noCount − 1) × amountcollateral
See Outcome Tokens — NegRisk Conversion for worked examples and the SDK call.
In this section
- Overview — this page
- Outcome Tokens — CTF mechanics, split/merge/redeem flows, NegRisk conversion math
Related sections
- Markets — the markets your positions belong to
- Trading — the fills that move outcome tokens into your wallet
- Resolution — when and how outcome tokens become redeemable