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A position has separate decision, execution, settlement, and redemption stages

The design treats venue activity and financial accounting as distinct events. A displayed order book, a match, settled cash, a final event payout, and a withdrawal are not interchangeable.

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Position lifecycle

  1. Construction. Isolated collateral and financing acquire a venue-native YES or NO outcome asset.
  2. Decision. The system evaluates a bounded, risk-reducing sale using executable prices and operating limits.
  3. Match. A venue records execution activity; this alone does not reduce debt.
  4. Settlement. Uniquely identified settlement evidence confirms cash. Confirmed cash can be applied to the loan ledger.
  5. Finality and redemption. Once the loan is zero, residual outcome assets await the venue’s final payout and can then be redeemed.

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Minimum-sale principle

Where a debt-clearing sale is feasible, the reference method selects the smallest certified sale quantity. The objective is narrow: clear the loan while retaining the greatest residual outcome-token quantity among the admissible choices. It does not predict or optimize the eventual event outcome.

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Failure is explicit

If execution, settlement, market status, signing, or reconciliation cannot satisfy the applicable conditions, the affected position is restricted or handled through an exception path. It is not represented as successfully converted. Read Debt-free finality and Settlement evidence for the two key accounting boundaries.