1
Open Reduce Order
Traders can reduce their existing position by writing the limit price and trade side to the
Reduce Order Escrow account. Upon processing this transaction, the OutcomeTokens are
transferred to the Reduce Order Escrow account.2
Fill Reduce Order
Reduction may require asynchronous behavior, as there may exist a race condition between the
balancing of onchain stablecoin reserve vaults and offchain fiat vaults. Therefore, there are
two paths that may be taken.
Synchronous Reduction
Synchronous Reduction
The Settlement Authority reads the limit price and side from the 
Reduce Order Escrow account,
sends a limit IOC order to offchain liquidity from the trader’s wallet.Upon receiving the order acknowledgement from the offchain liquidity provider, the
Settlement Authority will fill the onchain order.The unused OutcomeTokens are refunded to the trader, the PlatformFee is transferred to the fee receiver,
and the stablecoins are transferred from the Settlement Vault account to the trader’s wallet.Asynchronous Reduction
Asynchronous Reduction
The Settlement Authority reads the limit price and side from the 
Later, upon the stabelcoin reserve vaults being balanced, the Settlement Authority will
settle the event and fund the outcome. Stablecoins are transferred from the
Reduce Order Escrow account,
sends a limit IOC order to offchain liquidity from the trader’s wallet.Upon receiving the order acknowledgement from the offchain liquidity provider, the
Settlement Authority will fill the onchain order, but avoid settling the event.The unused OutcomeTokens are refunded to the trader.Later, upon the stabelcoin reserve vaults being balanced, the Settlement Authority will
settle the event and fund the outcome. Stablecoins are transferred from the Settlement Vault account to the trader’s wallet.
The PlatformFee is transferred to the fee receiver.