Quick answer
Settlement: Settlement is the final payout of a contract after resolution: winning positions receive the fixed payout and losing positions expire worthless.
Also called: payout
Explained, with an example
On Polymarket, holders of winning tokens can redeem them for $1 each once the market resolves; losing tokens become worthless [1]. In futures language, the CFTC glossary describes settlement as fulfilling the contract's delivery requirements and defines a settlement price set by the exchange [2]. See also Resolution and oracle.
Frequently asked questions
What is settlement?
Settlement is the final payout of a contract after resolution: winning positions receive the fixed payout and losing positions expire worthless.
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Sources
- Resolution — Polymarket Documentation, accessed 2 Nov 2026
- CFTC Glossary (binary option, DCM, order book, liquid market, market maker, settlement, wash trading, arbitrage, hedging) — U.S. CFTC, accessed 2 Nov 2026