Invalid Marketif its terms or end outcome are ambiguous, subjective or unknown.
Invalidshares, and If a market resolves as
Invalid, shares in any other outcome do not pay, while each
Invalidshare pays out one DAI.
Invalidorder book, in theory, can be used as a signal of the risk of
Invalidresolution. Higher bids or a higher last-traded-at price may indicate a greater risk of
Invalidresolution. Lower offers or a lower last-traded-at price may indicate a lesser risk or
Invalidresolution. Traders may buy
Invalidshares to hedge against these resolution risks.
Invalid, and Augur attempts to disincentivize market creators from creating these markets. However, the risk of
YES, the buyers of
YESand sellers of
NOreceive one DAI per share; and receive nothing if the market resolves as
Invalid. If the market resolves as
NO, the buyers of
NOand sellers of
YESreceive one DAI per share; and receive nothing if the market resolves as
Toronto Raptors, buyers of the
Toronto Raptorsoutcome as well as sellers of every other outcome (
Bucks, etc) would receive one DAI per share. In this instance, sellers of the
Toronto Raptors, and buyers of every other outcome would receive zero.
25outcome (strike) in a scalar market with a range between 10 and 50, and the market resolves at
40, the payout would be 15 per/share purchased. If one goes short and selling the outcome (strike) of
25and it settles at
40, one would lose 15 per share.
YESshares, since your model assumes that there is a 50% chance you will get a payout of one DAI and a 50% chance you will get a payout of zero, which averages out to .50 DAI.
YESshares are currently trading at .75 in “Will the Dolphins Win on Sunday?” that signals a perceived 75% chance that the Dolphins will win.
YESshares may adjust downward as buyers will now be willing to pay less.
4. If the precision is set to .1, traders may buy or sell shares at