Market Resolution

How markets are resolved using UMA's Optimistic Oracle

Resolution is the process of determining the outcome (YES or NO) of a prediction market after it ends.

How It Works

BaseCase uses the UMA Optimistic Oracle for decentralized, trustless resolution on mainnet:

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Resolution Timeline

Step	Duration	What Happens
1. Market Ends	—	Trading stops
2. Proposal	~Minutes	Anyone proposes YES or NO
3. Dispute Window	2 hours	Community can challenge
4. If Disputed	24-48 hours	UMA token holders vote
5. Settlement	~Minutes	Outcome is finalized
6. Claims Open	Forever	Winners claim anytime

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Proposing an Outcome

Anyone can propose the market outcome by posting a bond:

Detail	Value
Bond Currency	USDC
Bond Amount	~$250 (configurable)
Bond Return	Returned if correct
Dispute Cost	Same as bond

How to Propose

1. Navigate to the resolved market

2. Click Propose Outcome

3. Select YES or NO

4. Post the bond (USDC)

5. Wait for dispute window

If your proposal is correct and undisputed, you get your bond back. If you're wrong and disputed, you lose your bond.

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Dispute Process

If someone believes the proposed outcome is wrong:

1

Challenge Posted

The disputer posts an equal bond and challenges the proposal.

2

UMA DVM Votes

UMA token holders vote on the correct outcome over 24-48 hours.

3

Resolution

• If proposer was right: Disputer loses bond

• If disputer was right: Proposer loses bond

• Winner receives loser's bond as reward

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Claiming Winnings

BaseCase uses a Winner Profit Guarantee payout system: winners receive exactly $1 per winning share, plus a share of the OG Bonus Pool if they were bonding phase participants.

Fixed $1 Redemption

Your Payout = Winning Shares × $1.00

[!SUCCESS] All winners profit. Since you can never pay more than $1 per share during bonding (thanks to the $1 ceiling), winning always means profit.

OG Bonus Pool

If you bought during the bonding phase and held to resolution, you also receive a share of the OG Bonus Pool:

OG Bonus = (Your OG Shares / Total OG Shares) × OG Bonus Pool

The OG Bonus Pool is funded by excess vault funds after graduation (typically from unbalanced markets).

Example

Trader	Bonding Phase?	Shares	Entry Cost	Base Payout	OG Bonus	Total	Profit
Alice	YES	1,000	$600	$1,000	$50	$1,050	+$450
Bob	YES	500	$350	$500	$25	$525	+$175
Charlie	NO (order book)	200	$180	$200	$0	$200	+$20

If you hold losing shares, they are worth $0. You cannot claim anything.

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Edge Cases

What if the market is ambiguous?

UMA voters may resolve the market as INVALID if:

• The question is unclear

• The outcome is undeterminable

• Both YES and NO could be argued

In invalid resolutions, funds are returned pro-rata.

What if no one proposes?

Markets cannot pay out until someone proposes an outcome. Any user can propose if they're willing to post the bond.

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Technical Details

Mainnet (UMA Oracle)

Parameter	Value
Oracle Contract	UMA Optimistic Oracle V3
Liveness Period	2 hours (7200 seconds)
Identifier	ASSERT_TRUTH
Currency	USDC
Minimum Bond	~$250

Testnet (LocalResolver)

Parameter	Value
Resolver Contract	LocalResolver
Challenge Period	30 minutes
Bond Amount	$100 USDC
Dispute Resolution	Admin-based (simulates UMA)

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FAQ

Can I propose and dispute the same market?

No. That would be self-dealing. The oracle prevents the same address from both proposing and disputing.

What happens to my bond if no one disputes?

You get it back in full after the dispute window closes.

How do I become a UMA voter?

You need to hold UMA tokens and stake them in the UMA DVM. See UMA documentation for details.