> ## Documentation Index > Fetch the complete documentation index at: https://docs.metadao.fi/llms.txt > Use this file to discover all available pages before exploring further. # Trading Proposals > How conditional markets work and how you can trade them ## Overview Once a proposal has accumulated enough stake, the project takes half of its liquidity from the spot (e.g. META/USDC) market and moves it into a proposal's conditional markets. Traders can then make *conditional trades* over 3 days. **Conditional trades are like normal trades, except they revert if the condition isn't met.** ## Example: Participating in the ORE Market If you thought that ORE would have been worth more than \$19 if they reduced their emissions by 40%, you could have participated in [this market](https://v1.metadao.fi/ore/trade-v4/3PCPkFQQo7sU2DxpqnQNEttiyx1t5kByY2WPjCo1qLEZ): If you believed that ORE would go to \$30 if they adopted this change, you could have bought ORE in the pass market. For example, you could have placed a trade of \$1000 for 50 ORE (\$20 per ORE). Then, if the proposal passes, you would have bought ORE at \$20. But if it fails, you wouldn't have bought any ORE. ## How you can preserve & grow your portfolio by trading decision markets ### Case #1 - Bad Proposal Suppose there's a project, EXMPL, that has \$1M in its treasury and a \$1.2M market cap. You own \$10,000 worth of the token. The founder just raised a proposal to send all of the project's money to himself so that he can go on a nice vacation. The market immediately reacts to this information and the token shoots down to a \$900k market cap. But so far, no one has traded the decision markets, so it's trading \$900k in both the pass and fail markets - what should you do? One reasonable course of action would be to sell pass and buy fail. Pass is overvalued at \$900k if you think the token will go to 0 if the founder walks away with all of the money. And fail is undervalued at \$900k if you think that the immediate next proposal will be to liquidate, netting you a nice 11% profit. You're prepared for either scenario. ### Case #2 - Good Proposal Now suppose there's another project called XYZ with \$10M in revenues and a \$100M market cap. So it's trading at a price-to-sales multiple of 10. The founder just created a proposal to add a new business line. You think that this business line will add \$5M of revenue to the project, translating to \$50M in market cap. Here, your course of action should totally depend on the prices of the decision markets. If the pass market is already pricing the token at \$150M, you shouldn't take any trades. But if it's trading at \$110M in the pass market, you probably want to buy. If it's trading at \$200M, you probably want to sell. And if you think that \$100M is the fair value for the project if the proposal fails, you would probably want to buy the fail market at below \$100M and sell it above \$100M.