🔴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 PnL is calculated for traders.

• After the market outcome is proposed and not disputed by the participants of the UMA protocol, the event market trading stops.

• Traders' profits and losses are settled based on parimutuel logic, where the winners of the market share the losing traders' collateral based on their positions size.

• To supplement profits, the Reward Pool fees are shared by the winning traders.