Capital Flow & Redemption

One of the most complex aspects of PolyOrbit is the automated movement of funds between resolved markets and new positions. This page explains the technical lifecycle of a "Chain-Reaction" trade.

The Cycle of Funds

A standard Link Order involves three distinct financial phases that occur in rapid succession.

Phase 1: Redemption

When a Source Market resolves, your position (the shares you hold) is no longer tradable. It effectively becomes a claim on the collateral.

• Process: PolyOrbit interacts with the Polymarket Conditional Token Framework (CTF). It submits the winning shares to the contract.

• Result: The contract burns the shares and releases the underlying USDC collateral back to your account.

Phase 2: Conversion (Atomic)

In a manual trade, the USDC would sit in your wallet until you decide what to do. In a PolyOrbit Chain, this is instantaneous.

• Availability: The moment the USDC is redeemed, it is recognized as "Available Balance" for the next step of the chain.

• Calculations: If you selected a "Split Order," the system calculates the exact USDC amount to keep and the amount to forward to the next trade.

Phase 3: Re-Investment

The final phase is the execution of the new position.

• Process: The system takes the redeemed USDC and interacts with the Polymarket Exchange Proxy.

• Execution: It approves the spend and executes a Swap or Limit Order on the Target Market.

Efficiency

PolyOrbit attempts to batch these operations whenever possible to minimize gas fees and reduce the time your capital sits idle. By automating the Redemption-to-Reinvestment loop, the platform maximizes the compound velocity of your trading capital.