A token carries the right to a market payout
A YES token is a transferable claim on the money a market will pay if its final answer is YES. A NO token is the corresponding claim if the answer is NO. The planned token format is ERC-20, a standard that compatible wallets and trading services already understand.
Self-custody means you control the wallet holding the token. Selling or sending it transfers its payout right to the new holder. The money backing the market stays locked in the settlement contract, which is the program that applies the agreed payout rules.
Holding a token does not promise a one-dollar cash payment. Winning tokens share the money left after the initial court-fee reimbursement and the locked market fee. A losing token pays zero after a final YES or NO answer. A cancelled market follows its separate refund rule.
Check that people can actually trade
The design calls the change from pool claims to wallet tokens graduation. Before it happens, each side must hold at least $5,000 of backing. There must also be at least $1,000 of funded buying offers and $1,000 of funded selling offers that can be accepted immediately.
A bid is an offer to buy. An ask is an offer to sell. Their available size is called depth. A price written on a screen does not count unless the money or claims needed to fill it are already reserved.
All the conditions must hold for 24 continuous hours. If backing or available depth falls below its threshold, the clock restarts. Qualifying offers are locked for 48 hours when posted, leaving at least 24 hours after conversion. Orders that get filled consume their available depth, so replacement funding may be needed to keep the clock running.
One well-funded person can supply both sides. The checks demonstrate committed money and available trades, not a count of independent people or a guarantee of future liquidity. A market that passes can still lose buyers later.
The court fee is not collected to pass this check. It is funded separately when an eligible resolution request needs it.
Keep the backing and divide the token supply
Conversion keeps the money already committed. In the pool portion, each dollar of backing supports one potential YES token and one potential NO token. Only the winning side redeems after a final YES or NO answer, so the two supplies do not double the money owed.
Matched fixed offers retain their separate allocations. A funded $70 YES and $30 NO agreement contributes another 100 tokens to each side and another $100 of backing. It does not share the pool's early bonus.
The conversion publishes the deposits, claim weights, supplies and allocations so the totals can be checked. Afterward, every token on the same side has the same payout right. Its purchase date no longer changes its value at redemption.
Before close, a fully funded YES-and-NO pair can also be created by adding its backing, or combined again to withdraw that pair's backing. This does not take another holder's allocation. At close, those operations stop. Existing tokens can still change owners while resolution is pending.
Ownership determines who can collect
When the court result becomes final, QuantMMO applies the market's locked deductions and calculates the amount due to each winning token. The holder redeems the token's claim once. Buying a token from somebody else gives you that entitlement, not a promise to recover what you paid them.
If the market ends without a usable answer and reaches its cancellation rule, YES holders divide the backing preserved for YES and NO holders divide the backing preserved for NO. The refund follows current holdings. Earlier trades are not reversed at their historical prices.
Compatible services can accept these tokens for trading or borrowing, but each service decides what it supports. The planned sponsored transaction fees for verified people make wallet use easier. They do not change the token's settlement rights.
Earn interest while preserving the token payoff
A token holder can offer to lend a stated quantity for a stated term and interest payment. The borrower receives the tokens and can use or sell them. In exchange, the borrower locks enough separate cash to cover the tokens' maximum possible payoff, plus the agreed interest.
If the borrower returns the tokens on time, the lender gets the tokens and interest and the borrower's collateral is released. If the tokens are not returned, the collateral pays the lender what those tokens actually redeem for, plus interest. An unresolved market keeps the required collateral locked until that value is known.
If the borrower returns the borrowed number of tokens before the repayment date, the lender gets those tokens back with the agreed interest. The remaining collateral returns to the borrower. If the tokens are not returned, enough collateral stays reserved until their final payoff is known. An unresolved market is not a reason to release that protection early.
This lending collateral stays separate from the capital that accepts losses on parlays.