> 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/settlement-layer.md).

# Settlement Layer

ParlayIt runs its own chain for market, parlay, and order operations. This is what we refer to as the settlement layer.

Markets, parlays, orders, positions, and payouts all live on this chain. Custom transaction types drive each supported operation, which keeps the core settlement path direct and avoids relying on smart contracts in the middle of it. The result is lower latency, a more flexible execution flow, and a clear path to scale the product as it grows.

The current version of the chain averages **\~500ms block times**.

## What You Hold On The Chain

User balances on ParlayIt are denominated in **USDC**, backed 1:1 by USDC escrowed in the Polygon bridge contract.

* When you deposit, USDC is escrowed on Polygon and credited 1:1 to your ParlayIt account.
* When you withdraw, your ParlayIt balance is burned and the corresponding USDC is released from the Polygon escrow.
* Internally the asset is tracked as `uusdc` (micro-USDC, 6 decimals). It is surfaced as plain USDC throughout the product.

## No Custom Network Required

Using ParlayIt does not require adding a custom network to your wallet. Your wallet stays connected to **Polygon** the entire time.

* **Deposits** are normal Polygon transactions: you sign a USDC transfer to the bridge contract.
* **Withdrawals** are signed as EIP-712 typed-data messages in your wallet. The ParlayIt backend relays the signed request to the chain on your behalf.
* **Trading operations** on the ParlayIt chain are submitted by the backend on the user's behalf. There is no gas to pay on the ParlayIt side, and no chain switch in your wallet.

## Movement Of Funds

Funds move between Polygon and ParlayIt through the bridge, which is the operational layer between the two chains. The bridge handles deposits, withdrawals, the fast and slow processing paths, and the validator signature flow that authorizes each transfer.

For the full deposit and withdrawal experience, see [Bridge](/using-parlayit/bridge.md).

## Settlement Of Markets And Parlays

Once a market is resolved, the chain applies the result to user positions automatically. Winning positions settle, losing positions settle, and parlays settle based on the combined state of every leg.

For details on resolution and the 50/50 edge case, see [Resolution](/concepts/resolution.md). For the user-facing settlement view, see [Settlement](/using-parlayit/settlement.md).