Negative Risk Markets
Efficient trading for multi-outcome events.
Negative Risk (NegRisk) is a mechanism for multi-outcome events where only one outcome can resolve correctly (Yes). It is essentially an "inverse" market structure that allows for extreme capital efficiency.
How it works
In a standard binary market, "Yes" and "No" tokens are minted together. In a Negative Risk market, all outcome tokens are minted against the collateral, but the pricing reflects that winning one outcome effectively and automictically makes you a loser in all others.
Capital Efficiency
Instead of having to buy multiple "No" tokens for different outcomes, NegRisk allows you to trade a single "Yes" token for your preferred choice with the understanding that the pricing is mathematically tied to the other outcomes.
Important: When placing orders on NegRisk markets, the negRisk: true flag is required in the order payload. Doji handles this automatically when you select a NegRisk-enabled market.
Key Features
- Lower Costs: Reduced collateral requirements for multi-outcome markets.
- Complexity: Pricing logic is more complex than standard binary markets (1 - Price logic).
- Consolidated Viewing: Doji groups all related NegRisk markets for a single event in one interface.
Reference
For deeper technical details, see the official Polymarket Negative Risk Documentation.