Getting started
This page walks you through the basic steps from funding your wallet to placing and settling your first conditionals trade.
This page covers logging in, depositing USDC, choosing a branch to trade, opening a long or short position, and redeeming after settlement.
You can access the butter app at app.butter.markets.
Log in
Click Join Waitlist, press Connect wallet, enter your email address, and click Sign & Submit. After you receive an email confirming you have been whitelisted, press Connect Wallet in the top-right of the app and connect the same address as before.
When you connect an Ethereum Virtual Machine (EVM) wallet, Butter creates a Butter wallet that is derived from your connected wallet. This Butter wallet is what holds your conditional USDC balances and positions on Unichain.
Deposit collateral
Click Deposit in the top-right of the app to bridge USDC from any other chain into your Butter wallet on Unichain.
Once you have deposited, your available balance updates in the Portfolio overview panel on the bottom right of the trading screen.
Choose where to trade
Butter lets you trade and hedge the future price of assets such as BTCUSD or ETHUSD conditional on event outcomes like a Fed rate decision or an earnings release. You can use these markets to express a directional view on how the event will move the asset’s price, to offset existing exposure by taking the opposite side in a given branch, or to gain exposure only in branches where you are comfortable holding the asset.
Use the market selector in the top-left of the trading screen to choose what to trade:
First select an event, such as Fed rate decision (December).
Then select an asset, such as BTC/USD.
Finally, choose the branch you want to trade, for example Hike ≥25 bps, No change (<25 bps), or Cut ≥25 bps.
The chart and branch price reflect the market’s forecast for the asset's price conditional on that outcome occurring, so you can see how the market prices the asset under each branch relative to your hedging or trading goals.
Choose a trading mode
Multi-Branch mode keeps collateral across branches, while Single-Branch mode exchanges it into one branch before opening a position there.
Butter supports two trading modes for event conditionals: Multi-Branch mode (Multi Mode in the app) and Single-Branch mode (Single Mode in the app).
This section describes Multi-Branch and Single-Branch modes for event conditionals.
Definitions
Multi-Branch mode lets you split collateral across branches. This supports hedging and lets you take independent views in different branches.
Single-Branch mode lets you concentrate collateral into a single branch. This supports speculation and lets you take larger positions in the branch you select.
In Single-Branch mode, the position you open has exposure only in the selected branch and has no exposure in other branches for that position.
How Multi-Branch mode works
In Multi-Branch mode, you open positions while keeping conditional USDC spread across all branches for the event.
You trade within branches. You do not trade conditional USDC between branches.
How Single-Branch mode works
In Single-Branch mode, you concentrate all of your collateral into a selected branch before opening or increasing a position in that branch.
Conceptually, this flow has two stages:
Mint conditional USDC across all branches for the event–asset pair, as part of opening or adjusting exposure.
Exchange the conditional USDC in all other branches into conditional USDC in the selected branch, so that most of the collateral ends up in that branch, then use it to open the position there.
This concentrates your collateral into one branch and eliminates your conditional USDC in the other branches.
Single-Branch leverage example
Single-Branch mode can increase effective leverage because it exchanges conditional USDC from non-selected branches into outcome tokens for the selected outcome, which increases the amount of collateral available in the selected branch for the position.
For example, if the selected outcome token trades at $0.05, then exchanging $1,000 of conditional USDC from other branches buys 20,000 outcome tokens. If the selected branch is realized, those 20,000 outcome tokens redeem for $20,000, so the position has $20,000 of selected-branch collateral and 20× selected-branch exposure for the same $1,000 committed.
$0.05 corresponds to a 5% market-implied probability.
This leverage has no liquidations or funding rates. It only pays out if the selected branch is realized, and outcome tokens for outcomes that are not realized redeem for $0.
Settlement outcomes
At settlement, only one branch is realized.
Only conditional USDC held in the realized branch redeems for USDC.
Positions in unrealized branches expire worthless.
Your refund depends on how much conditional USDC you still hold in the realized branch after concentrating into one branch.
In Single-Branch mode, any conditional USDC exchanged into a branch that is not realized redeems for $0.
Evaluate the forecast
On the trading screen you can see:
The current branch price, which reflects the market’s view of the asset’s future price if that branch’s outcome occurs.
The spot price of the asset today.
The spread, which shows how different the branch price is from spot for that branch.
Compare these to your own view of how the event will affect the asset’s price and how that lines up with your portfolio. For example, if BTCUSD|Hike ≥25 bps trades at $60,000 and BTCUSD|Cut ≥25 bps trades at $70,000, ask whether those levels align with your expectations for BTC under each outcome.
If you already hold BTC and want to reduce downside risk under a hike, you can short BTCUSD|Hike ≥25 bps to offset part of your spot exposure in that branch. If you want exposure to BTC only if the Fed cuts, you can go long in BTCUSD|Cut ≥25 bps and avoid taking positions in branches where you see too much downside or uncertainty.
Go long or short in a branch
Use the trade panel on the right side of the screen to open a position in a branch.
Before you place an order, choose Multi-Branch mode (Multi Mode) or Single-Branch mode (Single Mode) in the trade panel. See Choose a trading mode for how the modes differ and what they change at settlement.
Select whether you want to be LONG or SHORT in the selected branch, then enter the amount of USDC or qty of the asset you want to trade.
The trade panel shows your estimated execution price, fees, and balance change before you submit the order. These fields update as you change direction and size.
What the trade panel fields mean
Position. Position shows your current position in the selected branch and the position you will have after the trade.
Balance change. Balance change shows how your conditional USDC balance in the selected branch changes if the trade executes, including fees. A negative number means the trade will decrease your balance of conditional USDC. A positive number means the trade returns conditional USDC to you.
Est. execution price. Est. execution price is the estimated average price your trade would get from the AMM at the current pool state for the selected size. It changes with size because larger trades move the AMM price.
Fees. Fees shows the fee rate for the trade. It is included in Balance change.
Post trade price. Post trade price is the branch price after the trade executes.
Max slippage. Max slippage sets a limit on how far execution can move from the current price. If the required slippage exceeds this limit, the trade fails instead of executing.
Click Place long order or Place short order to confirm the trade in your wallet and open the position.
Once the trade is confirmed, your new position appears in the Positions section at the bottom of the trading screen, showing your size, position value, and your position's collateral in that branch.
In Multi-Branch mode, you will also have been credited with conditional USDC in the other branches for the same event.
In Single-Branch mode, Butter exchanges conditional USDC from the other branches into the selected branch as part of opening or increasing the position.
Manage your positions
You can view and manage all of your open positions in the Positions table at the bottom of the trading screen.
From here you can:
Track your size, position value, and collateral in each branch.
See which event and branch each position belongs to, such as Fed rate decision (December) – Hike ≥25 bps.
If you want to adjust your exposure, either use the position's "edit" button, or make a new trade in the same branch or in other branches for the same event.
Exit and settle
Conditional markets stay open for trading until the underlying event occurs or the market reaches its expiry date.
After the event happens, Butter settles the conditional:
The oracle reports which outcome occurred and the settlement price, defined as the median price over a two-hour window that starts 12 hours after the event timestamp or market expiry, whichever occurs first, for the realized branch.
Positions in the realized branch can be redeemed for USDC at the settlement price.
Positions in unrealized branches expire worthless. Conditional USDC in the realized branch redeems for USDC, and conditional USDC in unrealized branches redeems for $0.
In Multi-Branch mode, opening a position leaves you holding conditional USDC in every branch, so the realized branch’s conditional USDC redeems for USDC even if you traded a different branch.
In Single-Branch mode, Butter exchanges conditional USDC into one selected branch, so conditional USDC exchanged into a branch that is not realized redeems for $0.
Once settlement has completed, you can redeem your positions in the realized branch for USDC and withdraw USDC from your Butter wallet back to your connected wallet whenever you are ready.
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