🔴Resolution Stage
Resolution Stage is the end phase in the lifecycle of a prediction market. This stage marks the end of the market and changes how the P&L is calculated for traders.
When a market resolves to YES, NO, or UNRESOLVABLE:
Winners (those who bet correctly) divide up the entire market's funds + accumulated trading fees are added to the payouts from which the winning traders are paid out.
In an UNRESOLVABLE outcome, all fees and trading gains are split equally among all traders who participated, based on their share amount.
Markets resolve through a robust multi-stage process:
Oracle Proposes: the AI oracle system suggests a resolution (YES, NO, or UNRESOLVABLE)
Community Can Dispute: anyone can dispute the proposal by posting a 100 USDC bond within a 6-hour window of the oracle proposal.
Protocol Team Arbitrates: if disputed, the protocol team makes the final determination based on the existing evidence
In the event of a premature resolution proposal all parties – oracle, community, team – can propose TOO_EARLY outcome, resetting the market resolution until more evidence appears.
This system ensures fair resolution while allowing undisputed oracle proposals to finalize automatically after the dispute window closes.
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