Resolution criteria act as the backbone of any prediction market. They tell traders what counts as a valid outcome and prevent confusion or disputes after the event occurs. Clear criteria reduce ambiguity, ensure fairness, and protect market integrity. Whether the market is about an election, an economic indicator, a crypto milestone, or a sports result, the criteria must spell out precisely what triggers a “Yes” or “No.”
Good resolution criteria are specific, objective, and verifiable. They avoid vague language like “significant increase” or “major announcement” and instead reference measurable events, official data sources, or publicly observable facts. They also clarify edge cases—what happens if the event is delayed, partially completed, or interpreted differently by competing sources.
Platforms like Polymarket or Myriad rely heavily on strict resolution criteria because even small ambiguities can move millions of dollars. Traders study these criteria to understand exactly what they’re betting on, especially in markets involving timing, definitions, or final data releases.
Resolution criteria matter because they ensure prediction markets settle fairly and transparently. Without clear rules, the market could resolve unpredictably, damaging trust and discouraging participation.
Clear criteria eliminate subjective interpretation. When a market references a specific data source, timestamp, or event condition, traders know exactly what counts. This reduces arguments, edge-case confusion, and the need for manual intervention. Strong criteria build trust and keep markets functioning smoothly even in high-stakes situations.
Platforms often cite official agencies, news outlets, or blockchain data because they provide objective, verifiable information. Using external sources ensures that outcomes are based on facts—not opinions. This is especially important for markets involving elections, economic data releases, or crypto price thresholds.
Many criteria include contingency rules—what happens if data is unavailable, an event is postponed, or results conflict across sources. These clauses provide a fallback plan, ensuring the market can still resolve fairly even when the real world behaves unpredictably.
A prediction market asks: “Will Bitcoin close above $100,000 on December 31, 2025?”
The resolution criteria specify:
FinFeedAPI’s Prediction Market API is the best match because it provides detailed market metadata—including resolution rules, sources, and settlement outcomes—from major prediction platforms. Developers can use this data to build resolution auditors, backtesting tools, and transparency dashboards that track how markets settle over time.
