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

# Edge Cases

> How the system handles extreme conditions and irregularities

## Binary Compression Near Extremes

As probability prices approach 0% or 100%:

* Marginal price movement becomes asymmetrical
* Small probability changes can have outsized impact
* Liquidity naturally thins near extremes

Ascend handles this by:

* Applying consistent tick sizing
* Maintaining symmetric LONG / SHORT mechanics
* Preserving deterministic PnL behavior

***

## Probability Drift Without Resolution

Some probability markets may drift for extended periods without ever reaching resolution.

Examples:

* Long-term macro expectations
* Ongoing policy speculation
* Persistent sentiment indicators

Behavior:

* Markets remain continuously tradable
* Funding maintains alignment with external signals
* No forced settlement occurs

This enables prediction markets to function as **ongoing probability instruments** rather than as one-off bets.

***

## Sudden Truth Revelation

Some events resolve instantaneously and unambiguously.

Examples:

* Official results released
* Market-moving announcements

Behavior:

* Index Price updates immediately
* Mark Price converges deterministically
* Settlement proceeds according to predefined rules

No discretionary delay is introduced.

***

## Contrarian Liquidity Vacuums

At high confidence levels, few traders may be willing to take the opposing side.

Behavior:

* Spreads widen naturally
* Funding incentives increase
* Liquidity reflects true market conviction

Markets remain functional without artificial liquidity injection.

***

## Oracle Irregularities

### Stale Oracle Data

If one or more oracle sources stop updating:

* Stale inputs are excluded from Index Price calculation
* Remaining valid sources continue to contribute
* Mark Price smoothing limits sudden jumps

If insufficient valid sources remain, the market may enter a **restricted state** until updates resume.

***

### Conflicting Oracle Inputs

If oracle inputs diverge beyond acceptable bounds:

* Outlier prices are ignored according to predefined thresholds
* Weighted aggregation continues using valid inputs
* The Mark Price clamp limits divergence

This prevents a single oracle from dominating price formation.

***

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