Every Polymarket share is backed by exactly $1 of collateral, and three actions move money in and out of that structure: split, merge and redeem. Most traders only ever need redeem — it's how you collect after a market resolves — but knowing all three helps you understand where prices come from.
The building block: one YES + one NO = $1
According to Polymarket's positions and tokens documentation, each market has two outcome tokens, YES and NO, issued with the Gnosis Conditional Token Framework on Polygon. Every YES/NO pair in existence is backed by $1 of pUSD (Polymarket's dollar-denominated collateral, see pUSD) locked in the contract.
That single rule explains why YES and NO prices add up to about $1.00, and why a winning share is always worth exactly $1.00.
Split: turn $1 into a YES and a NO
Split converts collateral into a matched pair of shares.
- $100 of pUSD → 100 YES + 100 NO.
You rarely need this as a regular trader: buying on the order book is simpler. Split is mainly a tool for market makers, who create both sides and then sell one or both.
Merge: turn a YES and a NO back into $1
Merge does the reverse, before the market resolves.
- 100 YES + 100 NO → $100 of pUSD.
When is that useful? Say you bought 100 YES at 40¢ and later 100 NO at 55¢ to lock in a result. You've spent $95 and hold a complete pair. Merging returns $100 immediately, without waiting for resolution — a locked-in $5 before costs.
Redeem: collect your winnings
Redeem is what happens after resolution:
- Each winning share → $1.00 in pUSD.
- Each losing share → $0.
Example. You hold 250 YES shares on a market that resolves YES. Redeeming gives you $250. If it had resolved NO, those shares would redeem for nothing.
Markets resolve through the UMA optimistic oracle, usually about two hours after an undisputed proposal. If there's a dispute it can take longer — see how Polymarket markets resolve. Very rarely a market resolves 50/50, and each share then redeems for $0.50.
How to redeem on Polymarket, step by step
- Open your portfolio or positions page.
- Find the resolved market; it will show a claim or redeem option.
- Confirm the action. Your pUSD balance updates with $1.00 for each winning share.
- To move money out, follow how to withdraw from Polymarket.
What about "convert"?
In negative risk markets — multi-outcome events where only one outcome can win — there's a fourth action: converting a NO share on one outcome into a YES share on every other outcome.
Split vs merge vs redeem at a glance
| Action | When | You give | You get |
|---|---|---|---|
| Split | Any time before resolution | $1 pUSD | 1 YES + 1 NO |
| Merge | Any time before resolution | 1 YES + 1 NO | $1 pUSD |
| Redeem | After resolution | 1 winning share | $1 pUSD |