Smart Contract Settlement
In prediction markets built on blockchains, settlement can be handled directly by smart contracts. These contracts contain predefined rules that determine how outcomes are resolved and how payouts are distributed.
Once the required resolution condition is met, the smart contract executes automatically. It releases funds, settles positions, and closes the market without relying on a central operator.
Smart contract settlement reduces operational risk and delays. Because the logic is executed on-chain, participants can verify the rules and outcomes independently.
This approach also improves consistency across markets. The same settlement logic is applied every time, which helps standardize prediction markets data.
For analysts, smart contract settlement clarifies when probabilities become final. It provides precise timestamps and removes ambiguity around payout execution and outcome confirmation.
Why It Matters
Reliable settlement is essential for trust. Smart contract settlement helps ensure prediction markets resolve accurately, transparently, and predictably.
What is smart contract settlement in prediction markets?
In prediction markets, smart contract settlement means outcomes and payouts are handled automatically by code. The contract enforces resolution rules without manual decisions. This reduces disputes and execution errors. It strengthens confidence in final outcomes.
How does smart contract settlement affect prediction markets data?
Smart contract settlement creates clean and well-defined resolution points in prediction markets data. Probabilities stop updating at a clear moment, and outcomes are finalized consistently. This improves historical accuracy and makes post-resolution analysis easier. Analysts benefit from predictable settlement behavior.
Why is smart contract settlement important for prediction markets APIs?
Prediction markets APIs surface data that depends on finalized outcomes. Knowing that settlement is handled by smart contracts helps analysts trust resolution timing and payout consistency. It provides context for settlement status and final probability values. APIs make this settlement data accessible at scale.
Real-World Example
On Polymarket, once an outcome is confirmed through the defined resolution process, a smart contract executes settlement automatically. Funds are distributed according to the final result without manual processing.
Smart Contract Settlement and FinFeedAPI
FinFeedAPI’s Prediction Markets API provides prediction markets data that reflects smart contract settlement events. Analysts can track resolution timestamps, final probabilities, and settlement status. This supports accuracy evaluation, lifecycle analysis, and data validation. The API enables consistent monitoring of smart contract–based settlements across prediction markets.