Depositing and Withdrawing

This page covers the practical steps for depositing USDC as an LP and withdrawing your capital.

LP Vault (Recommended)

The LP Vault at /liquidity is the primary way to provide liquidity on MarkIt. Your capital is pooled and deployed across multiple markets automatically.

Depositing into the Vault

1. Navigate to the Liquidity page (/liquidity)

2. Enter the USDC amount you want to deposit

3. If this is your first deposit, click Approve USDC (one-time)

4. Click Deposit and confirm the transaction

5. You receive vault shares priced at the current NAV per share

Withdrawing from the Vault

1. On the Liquidity page, enter the number of shares (or dollar amount) to withdraw

2. Click Request Withdrawal — this enters you into a FIFO queue

3. Your withdrawal is fulfilled as float (undeployed USDC) becomes available

4. When markets resolve and the vault collects capital, queued withdrawals are processed automatically

Vault withdrawals are not instant. Because capital is deployed into active markets, you may need to wait for markets to resolve before your withdrawal is fully processed. The queue processes in order — first in, first out.

Per-Market Deposits

You can also deposit directly into an individual market's pool via the Liquidity tab on any market's trading page.

When Can You Deposit?

LP deposits are accepted during the Created and Funded states — before and after the market opens for trading. You can deposit at any point while the market is accepting liquidity.

Step-by-Step

1. Navigate to the market's trading page

2. Open the Liquidity tab

3. Enter the USDC amount you want to deposit

4. If this is your first LP deposit on this market, click Approve USDC (one-time per market)

5. Click Deposit and confirm the transaction in your wallet

6. Your LP shares appear in the Liquidity tab under My LP Position

What Are LP Shares?

When you deposit, you receive LP shares at a fixed 1:1 ratio — $1 deposited always equals 1 share, regardless of the pool's current size or state. If you deposit 1,000 USDC, you get exactly 1,000 shares.

LP shares track your claim on the pool's capital and your earned fees at withdrawal time. They are internal accounting — not ERC-20 tokens. Fees are tracked separately via a per-share accumulator, so late depositors cannot capture fees earned before their deposit.

Minimum Deposit

The first LP deposit must meet the market's minimum threshold (typically 1,000 USDC) to move the market from Created to Funded. After that, additional deposits of any size are accepted.

Per-Market Withdrawals

When Can You Withdraw?

LP withdrawals are only available in the Withdrawable state. This occurs after:

1. The market is resolved (outcome determined)

2. The withdrawal buffer period has passed (currently 0 seconds — immediate)

You cannot withdraw while the market is Open or CloseOnly. Your capital is committed for the market's full duration. Evaluate the market's timeline before depositing.

Step-by-Step

1. After the market resolves, navigate to the market's trading page

2. Open the Liquidity tab

3. Your withdrawable amount is shown under My LP Position

4. Enter the number of LP shares to withdraw (or click Max)

5. Click Withdraw and confirm the transaction

6. USDC is sent directly to your wallet

What Do You Receive?

Your withdrawal is made up of two components:

• Capital share — your pro-rata portion of the pool's remaining capital (after reserving USDC for unredeemed winners and subtracting unclaimed fees)

• Fee share — your earned fees, tracked by a per-share accumulator based on how long your capital was in the pool and how much trading occurred during that time

The exact amount depends on:

• How much trading volume the market saw (more volume = more fees)

• How balanced the market was (balanced markets return more to LPs)

• Whether all winners have redeemed yet (unredeemed winner tokens are reserved)

Withdrawal Ordering

The contract reserves USDC for unredeemed winners before calculating LP withdrawal amounts. This means LPs cannot accidentally withdraw funds that are owed to winning token holders. Whether you withdraw before or after winners redeem, your payout is calculated correctly.

LP Deposit Scenarios

Here's what different market outcomes look like for an LP who deposited 1,000 USDC:

Scenario	Volume	Outcome	LP Receives	Notes
Balanced, active market	20,000 USDC	Either	~1,050 USDC	Fees from both sides, low skew
One-sided, crowded side wins	15,000 USDC	Crowded	~980 USDC	Pool covers large payout, offset by higher fees
One-sided, contrarian wins	15,000 USDC	Contrarian	~1,080 USDC	Most of crowded side's USDC stays in pool
Low-volume market	2,000 USDC	Either	~1,005 USDC	Minimal fee generation

These are illustrative examples. Actual returns vary based on the specific fee parameters, skew levels, and total pool size of each market.