Trading Guide

Trading Guide

This guide covers how to trade on Yosoku prediction markets, from placing your first order to redeeming winning positions.

Getting Started

Prerequisites

• A Solana wallet (Phantom, Solflare, or similar)

• USDC tokens for trading

• SOL for transaction fees

Connecting Your Wallet

1. Navigate to the Yosoku platform

2. Click "Connect Wallet" in the navigation bar

3. Select your wallet provider

4. Approve the connection request

Understanding the Order Book

Each market leg has two order books:

• Yes Order Book: Orders from traders who believe the outcome will occur

• No Order Book: Orders from traders who believe the outcome will not occur

Prices are displayed in cents, ranging from $0.01 to $0.99. A Yes price of $0.65 implies a 65% probability of the outcome occurring.

Reading the Order Book

Term	Description
Bid	An order to buy shares at a specified price
Ask	An order to sell shares at a specified price
Spread	The difference between the best bid and best ask
Depth	The total quantity of orders at each price level

Order Types

Limit Orders

Limit orders allow you to specify the exact price at which you want to trade.

Placing a Limit Bid (Buying Shares)

1. Select the market and outcome (Yes or No)

2. Enter your desired price (e.g., $0.55)

3. Enter the USDC amount you want to spend

4. Submit the order

Your order will either:

• Fill immediately if matching orders exist at your price or better

• Rest in the order book until filled or cancelled

How Shares Are Calculated

When you place a limit bid at price P with amount A:

• Shares received = A ÷ P

• Example: $100 at $0.50 = 200 shares

Market Orders

Market orders execute immediately at the best available prices in the order book.

Market Buy

1. Select the market and outcome

2. Enter the maximum USDC you want to spend

3. Optionally set a minimum shares threshold

4. Submit the order

The order fills against existing asks, starting from the lowest price. If the order book lacks sufficient liquidity, only available shares are purchased.

Market Sell

1. Select the market and outcome you hold

2. Enter the number of shares to sell

3. Optionally set a minimum USDC threshold

4. Submit the order

The order fills against existing bids, starting from the highest price.

Covered Bids

Covered bids allow you to use existing share positions as collateral instead of USDC.

How It Works

If you hold Yes shares and want to acquire No shares:

1. Your Yes shares serve as collateral

2. If the No bid is filled, you receive No shares

3. Your Yes shares remain locked until the order fills or is cancelled

This is capital-efficient because Yes + No shares together are always worth $1.00.

Coverage Options

Covered By	Collateral Used	Shares Received
USDC	USDC from wallet	Shares on bid side
Shares	Opposite side shares	Shares on bid side

Managing Positions

Viewing Your Positions

The Positions panel displays:

• Market name and leg

• Side (Yes or No)

• Share quantity

Claiming Filled Orders

When your limit order is filled:

1. Navigate to your open orders

2. Select the filled order

3. Click "Claim Position"

4. The shares are transferred to your position account

Cancelling Orders

To cancel an unfilled or partially filled order:

1. Navigate to your open orders

2. Select the order to cancel

3. Click "Cancel Order"

4. Unused USDC or collateral is returned to your wallet

Advanced Trading

Share Merging

If you hold equal quantities of Yes and No shares for the same market leg, you can merge them to redeem $1.00 per pair.

Example:

• You hold 100 Yes shares and 100 No shares

• Merging 100 pairs returns $100 USDC

• Your positions are reduced by 100 shares each

When to Merge

Merging is useful when:

• You want to exit a position without selling into the order book

• Yes + No prices sum to more than $1.00 (arbitrage opportunity)

• You need to free up capital

Arbitrage Opportunities

Due to market dynamics, Yes + No prices occasionally deviate from $1.00:

Scenario	Yes Price	No Price	Sum	Opportunity
Overpriced	$0.60	$0.45	$1.05	Sell both sides
Underpriced	$0.55	$0.40	$0.95	Buy both sides, merge

After Resolution

Checking Resolution Status

Markets can be in the following states:

• Active: Trading is open

• Proposed: A resolution has been proposed, dispute window open

• Disputed: Resolution is being decided by UMA Oracle

• Resolved: Outcome determined, redemption available

Redeeming Winning Positions

Once a market is resolved:

1. Navigate to your positions

2. Find positions in resolved markets

3. Click "Redeem"

4. Receive payout based on outcome:

Outcome	Your Position	Payout per Share
Yes wins	Yes shares	$1.00
Yes wins	No shares	$0.00
No wins	Yes shares	$0.00
No wins	No shares	$1.00
50/50 Split	Either side	$0.50

Position Account Closure

After redemption, your position account is closed and any remaining rent is returned to your wallet.