Etherdrake
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- Rescraped 97 empty/stale files across all sections (developers/, polymarket-learn/, quickstart/, changelog, resources/) - All files now contain actual content fetched from docs.polymarket.com
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- Markets
- How Are Prediction Markets Resolved?
How Are Prediction Markets Resolved?
Markets are resolved by the UMA Optimistic Oracle, a smart-contract based optimistic oracle.
Overview
When the result of a market becomes clear, the market can be “resolved,” or permanently finalized.
Markets are resolved according to the market’s pre-defined rules, which can be found under market’s the order book.
When a market is resolved, holders of winning shares receive $1 per share, losing shares become worthless, and trading of shares is no longer possible.
To resolve a market, an outcome must first be “proposed,” which involves putting up a bond in USDC.e which will be forfeited if the proposal is unsuccessful.
If the proposal is validated as accurate, the proposer will receive a reward for your proposal.
If you propose a market too early, or are unsuccessful in your proposal, you will lose all of your $750 bond. Do not propose a resolution unless you understand the process and are confident in your view.
To propose a market resolution
Once in the verification process, UMA will review the transaction to ensure it was proposed correctly. If approved, you will receive your bond amount back in your wallet plus the reward. If not approved, it will enter Uma’s dispute resolution process, which is described in detail here.
To dispute a proposed resolution
Once a market is proposed for resolution it goes into a challenge period of 2 hours.
If you do not agree with a proposed resolution, you can dispute the outcome.
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