> For the complete documentation index, see [llms.txt](https://docs.probly.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.probly.com/markets-and-trading/merging-and-splitting.md).
# Merging & Splitting Shares
Convert between USDC and YES / NO share pairs directly.
Prediction markets have two primitives that don't exist in traditional trading: **Split** and **Merge**. They let you convert directly between USDC and matched pairs of YES + NO shares, without going through the order book.
{% hint style="info" %}
Split and Merge are executed by the protocol, not against other users — no bid-ask spread and no impact on market price. Useful when the book is thin or the spread is wide.
{% endhint %}
## The Core Identity
For every market:
> **1 YES share + 1 NO share = $1.00 USDC**
Exactly one side will ultimately redeem for $1.00 and the other for $0, so holding both is guaranteed to be worth $1.00 at resolution. The protocol lets you convert between them right now.
## Split: USDC → Shares
Lock **$1 USDC** and receive **1 YES + 1 NO** share.
**Account changes:** USDC ↓ by the amount split; YES and NO balances both ↑ by the same amount.
### When to Use
* **Short** an outcome — split, then sell the side you don't want
* **Accumulate inventory** without paying the spread
* **Express a nuanced view** by holding a different YES / NO ratio than the market implies
> Your all-in cost is $1 per pair. If you sell one side, the remaining side's effective cost is whatever you didn't recover — e.g. sell NO at 40¢ and your YES effectively costs 60¢.
## Merge: Shares → USDC
Return **1 YES + 1 NO** and receive **$1 USDC** back.
**Account changes:** YES and NO balances both ↓ by the amount merged; USDC ↑ by the same amount. The amount you can merge is capped by the smaller of your YES and NO balances.
### When to Use
* **Close a hedged position** without paying the spread
* **Lock in the difference** between YES and NO bought at different prices
* **Free up USDC** for another market
## Related
* [Category Markets](/markets-and-trading/category-markets.md) — multi-outcome markets
* [Market Resolution](/fees-and-settlement/market-resolution.md) — how winning shares settle
---
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