Capital Allocation (Split Order)

The Split Order is an advanced workflow designed for intelligent profit taking and portfolio management. It allows users to define exactly how proceeds should be distributed upon the successful resolution of a market.

Overview

A common mistake in trading is "over-betting," or rolling 100% of profits into the next risky trade. The Split Order automates discipline by dividing your winnings into separate buckets: one for reinvestment and one for realization.

Logic & Configuration

When a Source Market resolves successfully, the Split Order intercepts the redeemed USDC and applies a percentage-based rule before moving to the next step.

The Split Ratio: You configure a ratio, such as 50/50, 70/30, or any custom value.

  • Bucket A (Wallet): This percentage is sent directly to your user wallet. It is removed from the automation cycle and secured as realized profit.

  • Bucket B (Next Target): This percentage is used to execute the buy order on the next market in the chain.

Tax Optimization Benefits

While PolyOrbit does not provide financial advice, the Split Order feature acts as a powerful tool for organizing your tax obligations.

  • Realizing Gains: By systematically sending a portion of profits to your wallet (e.g., 30%), you ensure you have liquid USDC available to cover potential capital gains taxes at the end of the year.

  • Record Keeping: This separation makes it easier to track which funds are "principal" for reinvestment and which funds are "net profit."

Strategic Application

This chain type is ideal for Long-Term Growth.

  • Example: A user starts with 1000 USDC. They set a 50/50 Split Order.

  • Result: Every time they win, they withdraw half the total value to safety. Even if a future chain fails, they have already secured significant returns in their wallet, ensuring they never lose their entire accumulated bankroll.

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