🔴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:

  1. Oracle Proposes: the AI oracle system suggests a resolution (YES, NO, or UNRESOLVABLE)

    1. Community Can Dispute: anyone can dispute the proposal by posting a 100 USDC bond within a 6-hour window of the oracle proposal.

  2. 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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