Quick answer
Resolution and oracle: Resolution is the step that decides which outcome of a market won; an oracle is the mechanism that brings that real-world result on-chain or into the exchange.
Also called: market resolution, optimistic oracle
Explained, with an example
Polymarket uses UMA's optimistic oracle: a proposer posts a bond (typically $750 pUSD), there is a 2-hour challenge period, and if the outcome is disputed twice the question escalates to UMA's DVM token-holder vote [1]. UMA describes the system as an optimistic oracle plus a dispute-resolution mechanism called the DVM [2]. Regulated exchanges instead resolve contracts under their published rulebooks. Read a market's resolution rules before relying on its price.
Frequently asked questions
What is resolution and oracle?
Resolution is the step that decides which outcome of a market won; an oracle is the mechanism that brings that real-world result on-chain or into the exchange.
About this guide
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Author: Ken Lin · Corrections: if you spot an error, we review it and date-stamp the fix.
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Sources
- Resolution — Polymarket Documentation, accessed 2 Nov 2026
- How does UMA's oracle work? — UMA Documentation, accessed 2 Nov 2026