Bayes Market uses a powerful mechanism called Split and Merge, which is a core feature of the Conditional Tokens Framework (CTF). It provides a fundamental, trustless way to enter and exit markets.
Splitting
This is the process of creating a full set of outcome shares from a single unit of collateral. One BYUSD can be "split" into a full set of shares for a given market, for example, one YES share and one NO share. This operation can be performed at any time and is crucial for creating new shares to be sold on the market. It's how liquidity is initially supplied to a new market.
Merging
This is the inverse process. You can "merge" a full set of outcome shares back into a single unit of collateral (BYUSD). For example, if you hold both a YES share and a NO share from the same market, you can merge them to get 1 BYUSD back, regardless of the current market prices. This is a key feature that allows you to exit a position without needing to find a buyer, as long as you hold a full set of shares.