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

# Merging & Splitting Shares

> Convert between collateral and outcome share pairs

## Overview

Prediction markets have two native mechanisms that don't exist in traditional instruments: **Merging** and **Splitting** shares.

<Frame>
  <img src="https://mintcdn.com/limitless/gaXTVCMwDdFSClic/images/merge-split.png?fit=max&auto=format&n=gaXTVCMwDdFSClic&q=85&s=70f13de87ceea2d76ebe816d5869027e" alt="Merge and split interface" style={{maxWidth: "400px"}} width="760" height="956" data-path="images/merge-split.png" />
</Frame>

## Splitting

**Split \$1** into **1 Yes share + 1 No share**.

This is useful when you want to take a position on one side without buying from the orderbook — split collateral and sell the side you don't want.

## Merging

**Merge 1 Yes share + 1 No share** back into **\$1** collateral.

This lets you exit both sides of a position and recover your collateral without selling on the orderbook.

## Why Use Merge / Split?

* **Capital efficiency** — Open and close positions without relying on orderbook liquidity
* **Better execution** — Avoid paying the spread
* **Liquidity defragmentation** — Under the hood, this enables better orderbook matching across Yes/No assets

<Info>
  Merge and split operations are available directly in the market UI. Look for the **Merge/Split** option on the market page.
</Info>