How Do Settlement Sources Work?
Prediction markets users are faced with numerous rules and need to understand them prior to buying a contract. One of the most important things to know is how markets settle on each platform. Settlement sources differ from platform to platform, so having that information before purchasing a contract can save users time and energy when looking to see why and how their platform’s market settled a dispute a certain way.
A settlement source is the source specified by a platform to verify and confirm market results. Each individual market can specify its own authoritative source for determining the final outcome of a market. These can range from official league sources, like MLB.com in baseball or NFL.com in football, to other statistics-based information providers such as Sportradar. Markets don’t officially settle when an event ends, they officially settle when the platform determines the winning result according to its specific market rules and settlement sources. This means that there is sometimes a delay between an event ending and the market officially settling, and therefore a delay in paying the winning position.
Once the contract is officially settled, winning contracts receive payment according to the platform’s rules.
The settlement source for each platform is something those buying a contract should always know. Users need to take the time to verify that the information is accurate because knowing which outlet your prediction market platform uses and how they go about settling disputes is important information. It’s also imperative for users to know that a final score or statistic seen on one website may not always be the information being used for settlement.
Users may also need to consider how their platform’s settlement providers handle postponed or cancelled events. They should also know what the rules are for revised statistics, or in the event a player doesn’t participate as conflicting sources are always a possibility. Knowing the rules and regulations of the prediction market you are using matters.
Major prediction markets like Kalshi, Polymarket, and Crypto.com all have different rules and settlement sources. Due to this, markets covering the same event may resolve differently on each platform. This is why checking the individual market rules is of the utmost importance before buying a contract.
Kalshi Help Center Market Rules
Polymarket Documentation Resolution Guide
Crypto.com Help Center Sports Event Trading Rules
Every platform is different and settlement sources often vary from platform to platform. Reading up on your specific platform’s rules before entering a contract will always provide a better understanding of what information will be used in determining a final result. Knowing the settlement source and understanding the rules will go a long way toward helping users get a firm grasp as to why a market settled the way it did.