> For the complete documentation index, see [llms.txt](https://docs.parlayit.gg/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.parlayit.gg/concepts/resolution.md).

# Resolution

Resolution is how ParlayIt decides which outcome won in a market. Every market needs a clear result before positions can be settled.

## Who Resolves Markets

Each ParlayIt market is published with a clear set of resolution rules. Once the event takes place, the ParlayIt team applies those rules and the result is committed on-chain.

ParlayIt's chain enforces a strict set of possible outcomes. Every individual market can only resolve to YES, NO, or 50/50. This constraint is encoded in the protocol itself, not in a policy.

Resolution is rule-driven and direct. There is no extended dispute process, which keeps settlement fast and predictable. Once a resolution is committed on-chain, it is final.

For specific market categories, such as crypto markets that resolve against a verifiable price feed, resolution will be handled automatically by oracles. These automated paths roll out as supported market types expand.

## Market Rules Are The Source Of Truth

Every market includes the rules used to determine its outcome. These rules are the authoritative reference for how the market will resolve. If you are unsure how a market will be settled, read the rules before trading.

The rules drive every resolution. When circumstances are not perfectly clear, the team applies those rules to the available facts. The published rules remain the reference point in every case.

## When Resolution Happens

Markets remain open and tradeable up until they are resolved on-chain. Trading does not pause when the underlying event takes place. A market keeps accepting orders right up to the moment of resolution. Prices may continue to move on emerging information during this window.

* **Clear outcomes** resolve quickly once the event is over.
* **Unclear outcomes** take longer. When the team needs additional information to apply the rules correctly, resolution continues until the outcome can be determined.

Resolution timing depends on outcome clarity rather than a fixed schedule. The goal is the correct answer, applied as quickly as the rules allow.

## The 50/50 Case

When a market resolves **50/50**, both YES and NO shares each settle for **half their winning value**. A share that would have paid $1 on a clean win pays $0.50 instead, regardless of which side the user took.

### 50/50 In Parlays

A parlay's payout is the product of every leg's individual payout factor. A 50/50 leg contributes a 0.5 multiplier no matter which side (YES or NO) the parlay selected for that leg.

That means:

* If one leg of the parlay resolves 50/50, the parlay's final payout is multiplied by 0.5, so the user collects **50%** of what they would have received if that leg had been a clean win.
* If two legs resolve 50/50, the payout is multiplied by 0.5 × 0.5 = 0.25, so the user collects **25%**.
* In general, with `n` legs at 50/50, the user collects `0.5^n` of the full winning payout.

A leg that resolves cleanly against the user's selection still makes the YES side of the parlay lose entirely. The 0.5 multiplier only applies when the leg itself resolves 50/50.

50/50 resolutions are uncommon.

## Parlays And Resolution

A parlay's result depends on every one of its legs.

* The **YES** token of a parlay wins only if every selected leg resolves as a winning leg.
* The **NO** token of a parlay wins if at least one selected leg resolves as a losing leg.

If any leg of the parlay resolves 50/50, the payout is reduced by a 0.5 multiplier per such leg, as described in [The 50/50 Case](#the-50-50-case) above.

## Lifecycle

```mermaid
flowchart TD
    A[Market open and available] --> B[Event occurs or deadline reached]
    B --> C{Outcome clear per rules?}
    C -->|Yes| D[Market resolves YES, NO, or 50/50 per the rules]
    C -->|Needs more information| E[Resolution period extended]
    E --> C
    D --> G[Settlement applied to positions]
```

## After Resolution

Once a market is resolved, ParlayIt's settlement layer applies the result to user positions. Winning positions settle, losing positions settle, and the market is closed.

See [Settlement](/using-parlayit/settlement.md) for how resolved markets are settled.