Market Resolution
When a prediction market question is decided in the real world, all PredMart trades on that market settle automatically. If you backed the winning outcome, you get paid. If you backed the losing outcome, you lose your margin.
How It Works
PredMart gets its final results from Polymarket. Once a winner is declared:
- All trades on that market settle at once
- You do not need to do anything — it happens automatically
Settlement Outcomes
| Your Trade | Market Resolves Yes | Market Resolves No |
|---|---|---|
| Backed Yes | Wins: you get your margin back + profit | Loses: you lose your margin |
| Backed No | Loses: you lose your margin | Wins: you get your margin back + profit |
Winning Trades
When your trade wins, you receive:
- Your original margin (the entry fee was already taken when you opened)
- Your profit based on how many shares you held and your entry price
- Minus a 10% profit fee (7% goes to LPs, 3% goes to PredMart)
Losing Trades
When your trade loses, your margin goes to the pool. LPs keep it because they were on the other side of your trade.
At resolution, it is all or nothing. You either win the full payout or lose your entire margin.
Resolution vs. Liquidation
| Event | When It Happens | What Happens |
|---|---|---|
| Resolution | The real-world event is decided | You win or lose based on the outcome |
| Liquidation | Your margin falls below 15% while the market is still open | Your trade is closed early and you lose the margin left in it |
You can be liquidated before resolution if the price moves strongly against you. See Margin and Liquidation for details.
Example: Resolution Payout
Say you backed Yes at a price of $0.40:
- You bought 100 shares
- You put down $20 in margin (after the 0.1% entry fee)
- The event happens, and Yes wins (final price: $1.00)
Your profit: ($1.00 - $0.40) x 100 shares = $60
After the 10% profit fee on that $60, you get your $20 margin back plus the net profit.
If No had won instead, you would lose your entire $20 margin.
What Happens to the Pool
LPs in the pool are on the other side of every trade. At resolution:
- If traders win: The pool pays out profits from its reserves
- If traders lose: The pool receives the forfeited margin
The per-market cap (10% of pool assets) limits how much the pool can lose on any single market. See Providing Liquidity for more on LP risk.
Related Pages
- How Trades Work - Trade lifecycle from open to close
- Margin and Liquidation - What happens before resolution
- Fees - Entry fee, profit fee, and other costs
- Oracle and Mark Price - How prices are determined