> ## Documentation Index
> Fetch the complete documentation index at: https://docs.into.space/llms.txt
> Use this file to discover all available pages before exploring further.

# Share Minting and Burning

> The mechanism that ensures fair pricing

Space uses a share minting and burning mechanism that allows you to create or destroy YES and NO shares at any time, ensuring you always have liquidity and fair pricing.

## How It Works

At any moment, you can:

* Mint shares: Deposit \$1 USDC → Receive 1 YES share + 1 NO share
* Burn shares: Return 1 YES share + 1 NO share → Get \$1 USDC back

This simple mechanism is the backbone of Space's capital efficiency. It means you're never truly "stuck" in a position - even if there are no buyers for your shares, you can create your own liquidity by minting pairs and selling the opposite side.

**Example:**

You hold 1,000 YES shares in the market *"Will BTC close above \$150K?"* but no one wants to buy them. Here's what you can do:

* Mint 1,000 new pairs by depositing \$1,000 (you now have 1,000 YES + 1,000 NO shares)
* Sell your original 1,000 YES shares on the market at the current price of \$0.35 = \$350
* Keep the 1,000 NO shares from the minted pairs
* Net result: You've effectively converted your YES position into a NO position for \$650 (\$1,000 deposit - \$350 received)

## Why This Matters

Always Available Liquidity: You can exit positions even in thin markets by creating your own counterparty through minting.

**Fair Prices:** If YES trades at \$0.65 and NO trades at \$0.40 (which adds up to \$1.05 instead of \$1), arbitrageurs can profit by buying both and burning them for \$1. This keeps prices honest and ensures YES + NO always equals approximately \$1.

**Multi-Outcome Markets:** In markets with [multiple outcomes](/features/multi-outcome) (like *"Which country wins the World Cup?"*), all NO shares are identical. This means your NO shares for "Brazil" can be converted into YES shares for "Argentina" without any additional capital - you're simply shifting your trade across related outcomes.

This mechanism is the same one used by leading prediction markets like Polymarket and it's what makes Space's multi-outcome markets and continuous trading possible.