- User has
10 ETH
. - User wants
10 ETH
worth of an insured YES position. - User buys
10 complete sets
, giving them10 YES + 10 NO + 10 INVALID
. - User trades
10 NO
forx YES
on the open market. - User ends up with
10+x YES + 10 INVALID
.
- If the market resolves as YES, they get
10+x ETH
(net profit ==x
). - If the market resolves as NO, they get
0 ETH
(net loss ==VAR
). - If the market resolves as INVALID, they get
10 ETH
(net neutral).