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What happens to your position if a market is delisted before it resolves?

· 7 min read
BlockTrader365

Here is a situation with no obviously right answer, which is why it is worth writing about.

You hold a position in an outcome market. It has not resolved. The venue removes the market — the event was cancelled, or the listing was migrated, or the whole set was replaced. The last price it traded at was forty cents. What is your position worth?

Why does withdrawing from a prediction market take minutes, not seconds?

· 8 min read
BlockTrader365

A token transfer on a modern chain confirms in a couple of seconds and costs a fraction of a cent. So when a platform tells you a withdrawal is "processing" for several minutes, the natural assumption is that something is stuck.

Usually nothing is stuck. The transfer really does take seconds — it is the two questions on either side of it that take the time, and both of them are questions a platform has to get right or lose your money.

What does a trading bot do when it decides not to trade?

· 6 min read
BlockTrader365

Most automated trading systems keep an excellent record of what they did and no record at all of what they decided against.

That sounds like a minor omission until you try to answer a simple question about a bot that has not traded in four days: is it being patient, or is it broken? A log containing only trades gives you an empty file in both cases.

Why don't prediction market odds add up to 100%?

· 6 min read
BlockTrader365

Open any prediction market with several candidates and add up the YES prices. In a market where exactly one outcome can win, those prices should sum to $1 — each YES share pays out $1 if its outcome resolves true, and precisely one of them will.

They frequently sum to $1.03. Sometimes $0.96.

That gap is not a display bug, and it is not free money either. It is worth understanding what it actually is.