Void & Cancel
When Markets Can Be Voided or Canceled
A market may be voided or canceled under the following circumstances:
| Category | Trigger | Action |
|---|---|---|
| Definition failure | Market question is insufficiently defined or impossible to judge | Admin voids |
| Data source failure | Price feed or oracle permanently unavailable with no fallback | Admin voids |
| Exploit / vulnerability | Security issue discovered that compromises fair settlement | Emergency cancel |
| Regulatory / legal | Legal requirement to cease the market | Cancel |
| Duplicate market | Identical market already exists and is active | Cancel (before any trades) |
Processing
When a market is voided or canceled:
- Market status changes to
cancelled - All open positions are refunded based on investment cost (total KP spent to acquire shares)
- Fees (vig) already collected are not refunded — they have already been distributed to the platform and yield seekers
- No further trading is allowed
- Users are notified of the cancellation and reason
Refund Calculation
Refund per user = total_cost of all positions in the market| Trade Type | Refund |
|---|---|
| Buy trades | Refund = cost_basis |
| Sell trades | Already settled (KP returned at sell time), no additional refund |
| Split positions | Refund = KP originally deposited for the split |
| Vig earnings received | Kept by recipients |
Timeline
| Phase | Duration |
|---|---|
| Decision to void/cancel | Admin review (case-by-case) |
| Status update | Immediate |
| Refund processing | Within minutes of status change |
| User notification | At time of status change |
Appeal
Currently there is no formal appeal process for void/cancel decisions. This is planned for future implementation as the community governance system matures.