> For the complete documentation index, see [llms.txt](https://docs.strike.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.strike.fun/smart-contracts/redemption.md).

# Redemption.sol

Post-resolution token redemption. Users burn winning outcome tokens 1:1 for USDT collateral.

## `redeem(factoryMarketId, amount)`

1. Verify market is in `Resolved` state
2. Determine winning outcome (YES or NO) from MarketFactory
3. Burn `amount` winning outcome tokens from caller via OutcomeToken
4. Pay out `amount * LOT_SIZE` USDT from market pool via `vault.redeemFromPool()`

## Dependencies

* **MarketFactory:** reads market state and outcome
* **OutcomeToken:** burns winning tokens (requires MINTER\_ROLE)
* **Vault:** pays out from market pool (requires PROTOCOL\_ROLE)

## Notes

* Only winning tokens can be redeemed (losing tokens have no value)
* Market pool is funded during atomic settlement in `clearBatch()`
* Each position unit represents 1 lot = LOT\_SIZE (1e16 = $0.01)
* For `useInternalPositions` markets (current 5-minute markets), redemption works with internal position balances instead of ERC-1155 tokens

## Events

* `Redeemed(uint256 indexed factoryMarketId, address indexed user, uint256 amount, bool outcomeYes)`