TRADING MECHANICS AND ORDER EXECUTION
The Platform functions as a non-custodial interface that aggregates liquidity and routes orders to various Underlying Venues. By using the trading terminal, you acknowledge and agree to the following specific mechanics and risks.
A. Aggregated Liquidity & Price Display
Estimated Pricing: The prices displayed on the Interface (the "Quoted Price") are aggregated estimates derived from the order books of Underlying Venues (e.g., Polymarket, Kalshi). Due to the volatile nature of prediction markets and blockchain network latency, the Quoted Price is not a guaranteed execution price.
Best Execution Routing: Our smart router attempts to find the best available price across connected venues. However, we do not guarantee "best execution" in the legal sense applied to regulated securities brokers. You accept the execution price "as is."
B. Order Types & Execution Risks
You are responsible for selecting the appropriate order type for your strategy.
Market Orders
Definition: An instruction to buy or sell immediately at the best available current price.
Slippage Warning: You acknowledge that Market Orders are subject to "Slippage"—the difference between the expected price and the actual execution price. Slippage can be significant in low-liquidity markets or during periods of high volatility. By placing a Market Order, you explicitly agree to accept the final execution price, even if it is less favorable than the Quoted Price.
Max Slippage Protection: You may set a "Slippage Tolerance" (e.g., 1%) in the settings. If the price moves beyond this tolerance during the transaction confirmation, the trade will revert (fail) to protect your funds. You are still responsible for the gas fees of reverted transactions.
Limit Orders
Definition: An instruction to buy or sell at a specific price or better.
No Guarantee of Fill: Limit Orders are placed directly on the order book of the Underlying Venue. We do not control the order book. There is no guarantee that your Limit Order will ever be filled, even if the market price briefly touches your limit price.
Maker Fees: Limit orders that add liquidity may be subject to different fee structures by the Underlying Venue, which are passed through to you.
C. The "Split" & "Merge" Functions (Minting & Redemption)
The Platform provides a simplified interface for interacting with the collateralization mechanisms of the Underlying Venues.
"Split" (Minting)
Mechanism: When you execute a "Split," you are instructing the smart contract to take your collateral (e.g., USDC) and mint a complete set of Outcome Tokens (e.g., 1 "Yes" Share + 1 "No" Share) at a 1:1 ratio.
Usage: This is typically used for arbitrage or liquidity provision strategies.
Risk: Once split, you hold position tokens, not stablecoins. You bear the risk of holding these tokens.
"Merge" (Redemption)
Mechanism: When you execute a "Merge," you are instructing the smart contract to burn a complete set of Outcome Tokens (e.g., 1 "Yes" + 1 "No") to release the underlying collateral back to your wallet.
Requirement: You strictly need to hold equal amounts of all outcome tokens in a market to execute a Merge. If you hold only "Yes" tokens, you cannot Merge; you must sell them via a Market/Limit Order.
Availability Risk
The Split and Merge functions rely entirely on the operational status of the Underlying Venue's smart contracts. If the Underlying Venue (e.g., Polymarket) pauses their contract, halts trading, or suffers an exploit, these functions may become unavailable. Whale Prediction cannot force a Split or Merge if the underlying contract is paused.
D. Transaction Failures & Network States
Gas Estimates: The Platform estimates the Network Fee ("Gas") required for your trade. If the blockchain network is congested, your transaction may fail or get stuck in a "pending" state.
Reverted Transactions: If a transaction reverts on-chain (due to slippage, lack of funds, or smart contract error), the blockchain network still consumes gas. We are not responsible for refunding gas fees for failed transactions.
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