Protocol
Market Resolution
Describes how markets are finalized and how outcomes are determined using reliable data sources and resolution processes.
Market resolution determines the final outcome of a prediction market. Once the event associated with a market has occurred, the protocol must verify the result and confirm which outcome is correct.
A clear and transparent resolution process is essential to maintain trust and fairness within prediction markets.
Resolution Criteria
Each market defines resolution criteria when it is created.
These criteria specify
• the event being evaluated
• the possible outcomes
• the source used to determine the final result
• the resolution time or deadline
Clear resolution criteria ensure that all participants understand how the final outcome will be determined.
Data Sources
Reliable information sources are used to determine the correct outcome of a market.
Resolution sources may include
• official data providers
• public market data
• trusted reporting platforms
• verified event results
Using transparent and verifiable data sources helps maintain accuracy and credibility.
Resolution Process
Once the event has concluded, the market enters the resolution stage.
During this stage
• the final outcome of the event is verified
• the correct market outcome is confirmed
• the market status is updated
This process ensures that prediction markets reflect real world outcomes.
Final Settlement
After the market is resolved, the market enters settlement.
During settlement
• the correct outcome is finalized
• the market closes
• the lifecycle of the market is completed
Settlement marks the final stage of the prediction market.
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