Market Resolution

How PMX markets are resolved through UMA's decentralized oracle

Resolution Process

When a market reaches its resolution date, it enters a four-step settlement process:

1
Trading Stops

Trading is permanently disabled for this market

2
Resolution Request

A resolution request is submitted to the UMA oracle

3
Oracle Determination

UMA's decentralized network votes on the correct outcome

4
On-Chain Finalization

The result is recorded immutably on the blockchain

UMA Oracle

PMX uses UMA, a battle-tested decentralized oracle that has secured billions in DeFi. UMA resolves outcomes through economic incentives rather than trusted authorities.

How UMA Works

  1. Proposal — A proposer asserts the outcome and posts a bond
  2. Challenge Window — Anyone can dispute the proposal by posting a counter-bond
  3. Voting — If disputed, UMA token holders vote on the correct outcome
  4. Settlement — Correct proposer/disputer gets their bond back + reward; incorrect party loses their bond

This design makes manipulation economically irrational — the cost to attack the oracle exceeds any potential profit.

Dispute Protection
Contested outcomes trigger additional voting rounds. The economic security model ensures honest resolution even in adversarial conditions.

After Finalization

Once UMA finalizes the outcome:

  • The winning outcome (YES or NO) is permanently recorded on-chain
  • Winning tokens become redeemable at par value
  • Losing tokens become worthless

Resolution typically completes within a few hours of the resolution date. Complex or disputed outcomes may take longer.

Next
Learn how to claim your winnings after resolution.
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Claiming Winnings