HRDE BlogPrediction Markets

Prediction Markets: Read the Resolution Rules First

In event contracts, the exact settlement source and deadline can matter as much as the underlying event.

September 26, 20267 min read
HOMERUNDATAEDGE.COM
01

The headline is not the contract

A market title is usually a summary. Resolution rules define what counts, which source controls settlement, and the deadline that applies.

Two contracts about the same real-world event can settle differently if their wording or sources differ.

02

Three things to verify

Before evaluating a prediction-market price, verify the exact wording, the designated settlement source, and the close or resolution deadline.

  • What exact event causes YES or NO?
  • Which source has final authority?
  • What happens if the event is delayed, revised, or disputed?
03

Price is market belief, not truth

A 70-cent contract can be read as roughly 70% market-implied probability before fees and structural differences. It is still a market price, not a fact about the future.

Research education only. This article is informational and does not provide gambling, financial, investment, or legal advice. Market prices and event information can change quickly.