Verification & Settlement
Prediction markets are settled using UMA. Additional verifier contracts are under development.
UMA
- After the end time of a market/condition has passed and the market deployer can submit a resolution to UMA, also providing a bond.
- During a challenge window (the "assertion liveness") following submission, anyone can dispute this settlement by posting an equal-sized bond.
- If no dispute is submitted during this period, market participants can then withdraw collateral based on the value of their position according to the settlement.
- If a dispute is submitted, UMA tokenholders vote to determine whether the assertion is true or false. Another settlement must be submitted for the market.
- If the vote resolves to true, the disputer loses their bond. If the vote resolves to false, the asserter loses their bond.