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update contract docs
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mshrieve committed Feb 12, 2024
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The contracts in this repository are designed to unify mutually exclusive binary markets into a single multi-outcome market structure. By mutually exclusive binary markets, we mean a set of binary YES/NO markets of which one and only one will resolve true. The canonical example is a set of markets each representing a candidate in a particular political election, where only one can win. Each component binary market is a YES/NO market for a particular candidate. The fact that only one candidate can win guarantees that there are certain equivalancies amongst certain sets of positions.

[Contract Documentation](./docs/index.md)

As an example, consider an election with candidates A, B, and C. For each candidate there is a binary YES/NO market, and exactly one candidate will win, i.e., exactly one market will resolve YES, and the rest NO. Consider a position consisting of 1 NO A and 1 NO B.
If A wins, the position is worth 1 USDC. If B wins, the position is again worth 1 USDC. If C wins, the position is worth 2 USDC, as both NO tokens are redeemable for 1 USDC each. We can see that the position is equivalent to 1 USDC and 1 YES C, as the value of the two positions is equal in all three cases. The NegRiskAdapter is designed precisely to allow a position of 1 or more NO tokens to be converted to the equivalent position of YES tokens plus some amount of USDC.

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