Resolution
The process by which a prediction market determines and records the winning outcome, triggering payout to winning token holders.
Definition
Resolution is the event at which a prediction market's outcome is determined and recorded on-chain. For a binary market, resolution sets one outcome token to $1 and the other to $0. The resolver reads the oracle price or event result and writes the outcome to the Conditional Tokens Framework contract, after which winning token holders can redeem their positions.
In practice
On Polymarket's 5-minute crypto binaries, resolution happens automatically at the market close time via the Chainlink RTDS oracle. The Gamma API reflects the resolved outcome within seconds to minutes. Predtools bots call resolveViaGamma() in a polling loop after the market close time, checking whether a YES or NO token price has reached $0.99. When confirmed, the bot records the win or loss, updates its PnL tracker, and logs the outcome via Telegram. Never exit a position based on Binance price alone — wait for oracle confirmation.