Skip to content
Prediction Markets101

Split

Market makers split USDC to create inventory they can sell on both sides of the order book.

Prediction Markets 101 editorial team Updated April 16, 2026 1 min read

Definition

Splitting is depositing USDC to mint equal quantities of YES and NO conditional tokens. The opposite of merging.

Plain-English explanation

100 USDC can be split into 100 YES + 100 NO. Both sides together are always worth 100 USDC at resolution (one pays $1, the other $0). The market maker then tries to sell each side at >50¢ to capture spread.