Invalid Market
if its terms or end outcome are ambiguous, subjective or unknown. Invalid Market
, shares in any other outcome do not pay. Invalid
shares, and If a market resolves as Invalid
, shares in any other outcome do not pay, while each Invalid
share pays out one DAI.Invalid
order book, in theory, can be used as a signal of the risk of Invalid
resolution. Higher bids or a higher last-traded-at price may indicate a greater risk of Invalid
resolution. Lower offers or a lower last-traded-at price may indicate a lesser risk or Invalid
resolution. Traders may buy Invalid
shares to hedge against these resolution risks. Invalid
, and Augur attempts to disincentivize market creators from creating these markets. However, the risk of Invalid
resolution remains.YES
, the buyers of YES
and sellers of NO
receive one DAI per share; and receive nothing if the market resolves as NO
or Invalid
. If the market resolves as NO
, the buyers of NO
and sellers of YES
receive one DAI per share; and receive nothing if the market resolves as YES
or Invalid
.Toronto Raptors
, buyers of the Toronto Raptors
outcome as well as sellers of every other outcome (Warriors
, 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.25
outcome (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 25
and it settles at 40
, one would lose 15 per share.YES
shares, 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. YES
shares are currently trading at .75 in βWill the Dolphins Win on Sunday?β that signals a perceived 75% chance that the Dolphins will win. YES
shares may adjust downward as buyers will now be willing to pay less.1
, 2
, or 3
or 4
. If the precision is set to .1, traders may buy or sell shares at .1
, .2
β¦ 4.8
, 4.9
.