OddsForge
How Are Markets Resolved?
Understanding how market outcomes are verified using official data sources and settled on-chain.
Resolution Overview
When a market's event occurs or its deadline is reached, the market enters the resolution phase. OddsForge resolves markets using verified data from official sources â such as ESPN for sports results, CoinGecko for cryptocurrency prices, and other authoritative data providers.
Data Sources
OddsForge uses trusted, publicly verifiable data sources for market resolution:
| Market Type | Data Source | Examples |
|---|---|---|
| Sports | ESPN | Soccer, NBA, NFL, NHL, MLB match results |
| Crypto | CoinGecko | Bitcoin price targets, token milestones |
| World Events | Official news sources | Elections, policy decisions, geopolitics |
| Other | Specified per market | Each market lists its resolution source |
Resolution Process
The resolution follows these steps:
Step 1: Event Occurs
The real-world event that the market is based on either happens or doesn't happen (or the deadline passes). The market transitions to an "Awaiting Resolution" state.
Step 2: Outcome Verification
The platform verifies the outcome against the resolution criteria defined when the market was created, using the designated data source. For example:
- Sports markets: Official match result from ESPN
- Crypto markets: Token price data from CoinGecko
- Other markets: Public data from the source specified in the market's resolution criteria
Step 3: Resolution Executed
Once the outcome is verified, the administrator resolves the market on the smart contract. The resolution outcome (YES, NO, or DRAW for 3-way markets) is recorded permanently on BNB Smart Chain.
Step 4: Automatic Payout Distribution
The smart contract automatically calculates and distributes winnings:
- The 5% platform fee is deducted from the losing pool.
- The remaining funds are distributed proportionally to winners.
- Payouts are credited to winners' balances instantly â no manual claim required.
Resolution Outcomes
| Outcome | What Happens |
|---|---|
| YES wins | YES shareholders receive proportional payouts from the total pool (minus 5% fee on losing pools). Other shares are worth $0. |
| NO wins | NO shareholders receive proportional payouts from the total pool (minus 5% fee on losing pools). Other shares are worth $0. |
| DRAW wins (3-way) | DRAW shareholders receive proportional payouts. YES and NO shares are worth $0. |
| Market cancelled | All traders receive a 100% refund of their original trades. No fees are charged. |
When Are Markets Cancelled?
A market may be cancelled in exceptional circumstances:
- Ambiguous outcome â The event result is unclear or doesn't fit the resolution criteria.
- Event cancelled â The underlying event is cancelled or postponed indefinitely.
- Data source unavailable â The resolution data source becomes inaccessible.
- Market error â A mistake was made in market creation (wrong dates, unclear criteria).
Automatic Refund on Cancellation
When a market is cancelled, the smart contract's cancelMarket() function is called. This triggers an automatic refund process:
- The market status is set to "cancelled".
- All trades are refunded at their original amounts.
- No platform fee is charged.
- Traders can withdraw their refunded USDC immediately.
Resolution Timeline
| Phase | Duration | Description |
|---|---|---|
| Event occurs | â | The real-world event happens or deadline passes |
| Outcome verified | Minutes to hours | Administrator verifies result against official data source |
| Resolution executed | < 1 minute | Smart contract is called, outcome recorded on-chain |
| Payout distribution | Immediate | Winnings calculated and available for withdrawal |
Transparency & Trust
OddsForge provides multiple layers of transparency:
- On-chain record: Every resolution and settlement is permanently recorded on BNB Smart Chain and can be verified on BscScan.
- Public data sources: All resolution data sources (ESPN, CoinGecko, etc.) are publicly accessible â anyone can independently verify outcomes.
- Public criteria: Resolution criteria are published at market creation and cannot be changed afterwards.
- Smart contract logic: The payout calculation is handled entirely by the smart contract â no manual intervention in fund distribution.
- Full refund on cancellation: If a market cannot be fairly resolved, all traders are fully refunded.