YES and NO Tokens

Every MarkIt market has two outcome tokens: YES and NO. Understanding what these tokens are — and what they're worth — is the core of trading on MarkIt.

What Are Outcome Tokens?

When you take a position on a market, you receive ERC-20 tokens representing your chosen outcome. Each market deploys its own unique pair of YES and NO token contracts.

For the market "Will the Rockets beat the Hornets?":

• YES tokens represent the position that the Rockets will win

• NO tokens represent the position that the Hornets will win

These are standard ERC-20 tokens with 18 decimals, held in your wallet like any other token.

How They Resolve

At resolution, the market operator determines the outcome. Then:

Outcome	YES Token Value	NO Token Value
YES wins	1.00 USDC each	0.00 USDC
NO wins	0.00 USDC	1.00 USDC each

One side pays out in full. The other side is worthless.

A Worked Example

The market is "Will the Rockets beat the Hornets?" and YES is priced at 0.57 USDC.

You buy 100 YES tokens for 57.00 USDC.

If the Rockets win (YES outcome):

• Your 100 YES tokens are redeemable for 100 × 1.00 = 100.00 USDC

• Profit: 100.00 − 57.00 = +43.00 USDC

If the Hornets win (NO outcome):

• Your 100 YES tokens are worth 0.00 USDC

• Loss: −57.00 USDC

Minting and Burning

Tokens are minted when you take a position and burned when you redeem after resolution. Only the MarketEngine contract can mint or burn tokens — no one else can create or destroy them.

• Minted: When you submit a position, the contract takes your USDC and mints the corresponding number of YES or NO tokens to your wallet

• Burned (redeem): After resolution, winning token holders burn their tokens to receive 1.00 USDC each

• Burned (sweep): Losing tokens can be swept (burned) for cleanup — they have no redemption value

Can I Trade Tokens on Secondary Markets?

Outcome tokens are standard ERC-20s, so they are technically transferable. However, there is currently no secondary market or DEX liquidity for MarkIt outcome tokens. The intended way to exit a position before resolution is to hedge by buying the opposite side. See Hedging and Locking Profit.

There is no sell function. You cannot sell tokens back to the market for USDC before resolution. This is by design — it simplifies the protocol and strengthens solvency guarantees.