Market Lifecycle

Every MarkIt market progresses through six states, from creation to final withdrawal. States advance automatically based on on-chain conditions — they never go backward.

State Diagram

Created → Funded → Open → CloseOnly → Resolved → Withdrawable

States in Detail

Created

The market has been deployed but doesn't yet have enough LP capital to open for trading.

Who	What They Can Do
Traders	Nothing — trading is not available
LPs	Deposit USDC to fund the pool
Operator	Wait for LP funding

Advances to Funded when the total LP deposits reach the minimum threshold (typically 1,000 USDC).

Funded

The pool has enough capital. Trading is now live.

Who	What They Can Do
Traders	Take YES or NO positions
LPs	Deposit additional USDC
Operator	Monitor market activity

Advances to Open immediately upon reaching the funding threshold (Funded and Open are effectively the same state for user experience).

Open

Active trading state. This is where most of a market's life is spent.

Who	What They Can Do
Traders	Take YES or NO positions, view P&L, hedge
LPs	Deposit additional USDC
Operator	Monitor market activity

Advances to CloseOnly when the current time is within the close-only window (typically 1 hour before the market's close time).

CloseOnly

Final hour before the market closes. Only positions that reduce the current skew are allowed. This prevents last-minute manipulation where a large one-sided position could distort the market.

Who	What They Can Do
Traders	Take positions only on the contrarian side (the less-popular outcome)
LPs	Cannot deposit
Operator	Monitor market activity

Advances to Resolved when the operator calls the resolve() function after the market's close time has passed.

CloseOnly protects market integrity. If 70% of positions are on YES, only NO positions are accepted during the CloseOnly window. This prevents someone from dumping a massive one-sided position right before the market locks.

Resolved

The outcome has been determined. Winners can now redeem their tokens.

Who	What They Can Do
Traders	Redeem winning tokens for 1.00 USDC each. Sweep (burn) losing tokens.
LPs	Wait for the withdrawal window
Operator	No further action needed

Advances to Withdrawable after the withdrawal buffer period (currently 0 seconds — immediate transition).

Withdrawable

The final state. All obligations can be settled.

Who	What They Can Do
Traders	Redeem winning tokens (if not already done)
LPs	Withdraw their pro-rata share of the pool
Operator	No further action needed

This is a terminal state. The market stays here until all participants have claimed their funds.

Automatic State Advancement

States advance automatically. Every time any external function is called on the contract, it checks whether state transition conditions are met and advances if so. There is no need for anyone to manually trigger state changes — except for resolution, which requires the operator to explicitly call resolve() with the outcome.

Timeline Example

For an NBA game market:

Time	State	Activity
Day before game	Created → Funded	Market deployed, LP deposits USDC, market opens
Day before → 1 hour before game	Open	Active trading — YES and NO positions taken
1 hour before game	CloseOnly	Only contrarian positions allowed
Game time	CloseOnly	Market closed, waiting for game result
After game ends	Resolved	Operator resolves based on final score
Immediately after	Withdrawable	Winners redeem, LPs withdraw