Merging & Splitting Shares

Convert between collateral and outcome share pairs

Overview

Prediction markets have two native mechanisms that don’t exist in traditional instruments: Merging and Splitting shares.

Splitting

Split $1 into 1 Yes share + 1 No share.

This is useful when you want to take a position on one side without buying from the order book. Split collateral and sell the side you don’t want.

Merging

Merge 1 Yes share + 1 No share back into $1 collateral.

This lets you exit both sides of a position and recover your collateral without selling on the order book.

Why use merge / split?

• Capital efficiency — Open and close positions without relying on order book liquidity
• Better execution — Avoid paying the spread
• Liquidity defragmentation — Under the hood, this enables better order book matching across Yes/No assets

Merge and split operations are available directly in the market UI. Look for the Merge/Split option on the market page.

Merge and split via the API

Server-wallet accounts can split and merge programmatically through the REST API:

• POST /portfolio/split — convert collateral into a full outcome set
• POST /portfolio/merge — convert a full outcome set back into collateral

These endpoints sign the on-chain transaction with the managed server wallet, so they only work for server-wallet (Web2 mode) accounts. If you trade with an EOA or your own smart wallet, use the Merge/Split option in the UI or call splitPosition / mergePositions on the Conditional Tokens Framework contract yourself. See Smart Contracts for the deployed addresses.