Shares & Payouts

When you trade on Polymarket, you are buying and selling Outcome Shares.

What is a Share?

A share is a digital token (specifically, a Conditional Token based on the ERC-1155 standard) that represents a claim on a future payout.

• Collateral: Every share is fully backed by USDC locked in the smart contract.
• Safety: Because it's fully collateralized, the winner is guaranteed to be paid. The loser's money pays the winner.

Payout Example

Let's look at a market: "Will it rain tomorrow?"

• Alice bets $60 on Yes.
• Bob bets $40 on No.
• Total Pool: $100.

Scenario A: It Rains (Yes wins)

• Alice holds "Yes" shares. They are now worth $1.00 each.
• Bob holds "No" shares. They are worth $0.00.
• Alice gets the full $100 (her $60 + Bob's $40).

Scenario B: It's Sunny (No wins)

• Alice's shares -> $0.
• Bob's shares -> $1.00.
• Bob gets the full $100.

Redeeming

Once a market resolves (the event happens and the oracle confirms it):

1. Your positions will show as "Ready to Redeem".
2. You click Redeem.
3. Your shares are burned, and USDC is sent to your wallet.

Note: Sometimes redemption is automatic, or you can simply sell your shares for 99.9¢ right before resolution if you don't want to wait.

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