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Market lifecycle

An event market starts open for trading. After the configured end time or rule condition, the market can enter resolution. During resolution, trading may remain available for part of the process or stop depending on the settlement state. Once finalized, the market is settled and share redemption can begin.

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Optimistic resolution

TACO event markets can use optimistic resolution:
  1. A proposer submits an outcome and locks a proposal bond.
  2. A challenge window opens.
  3. If no one disputes, the proposed outcome can be finalized.
  4. If someone disputes, the dispute goes to the configured resolver.
  5. The final outcome determines trader redemption and LP settlement.

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Possible outcomes

Most markets settle as YES wins or NO wins. Some markets can use an invalid or split payout if the rules specify it or the resolver determines that the market cannot be fairly resolved as YES or NO. Always read the market rules before trading. The rules define what evidence matters and how ambiguous cases should be handled.

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Redeeming shares

After finalization, traders redeem outcome tokens for collateral based on the payout vector. Winning shares receive value. Losing shares may receive nothing. Split outcomes pay both sides according to the finalized payout rule.

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Emergency paths

Some deployments may include emergency settlement for cases where normal resolution cannot complete. Treat emergency settlement as a safety fallback, not the normal user path.