How Are Prediction Markets Resolved?

How Are Prediction Markets Resolved

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 propose a market resolution

Once the verification process begins, Xmarket will review the proposed outcome to ensure it is accurate. If the proposal is approved, the market will close based on that resolution. The system will then distribute funds to participants’ wallets along with any applicable rewards.

To dispute a proposed resolution

Once a market is proposed for resolution it goes into a challenge period up to 24 hours. If you do not agree with a proposed resolution, you can dispute the outcome.

Unknown/50-50

This (rarely used) outcome is for events where none of the other options are appropriate. In this case the market price resolves to 50 yes and 50 no.

Xmarket intends to progressively transition to a decentralized resolution framework, incorporating community-driven dispute mechanisms.