Concepts
Settlement and redemption
How each token's payout is fixed, and how to collect it.
Settled at the opening price
With the opening price P, each token of a band from L to H redeems for:
| Token | Redeems for |
|---|---|
| UP | P − L, between 0 and H − L |
| DOWN | H − P, between 0 and H − L |
Settled at midpoints
Every band settles at its midpoint, so each UP and each DOWN redeems for half its band, when:
- the end date passes, with a further minute's grace, and no first trade was recorded, or
- the first trade was recorded but its 30-minute average was not complete seven days later.
Redeeming
Redeeming burns your tokens and pays their payout in USDC, less the market's settlement fee. There is no deadline: settled tokens can be redeemed at any time.
Holding both UP and DOWN of a band? Each matched pair merges back to the band's full width with no fee, which is more than redeeming the two. The app's Redeem all merges matched pairs first and redeems the rest. See Redeem.