> For the complete documentation index, see [llms.txt](https://docs.strixlab.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.strixlab.io/trading/market-resolution.md).

# Market Settlement

When the event a market is about concludes, the market **settles**: the actual outcome is confirmed, and every share converts to its final value.

{% hint style="info" %}
You may also see this called *resolution* elsewhere — same thing. On Strix Lab, markets settle.
{% endhint %}

### What happens at resolution

{% stepper %}
{% step %}

#### The outcome is confirmed

Once the real-world result is known and verifiable from the market's stated source, the correct outcome is set for the market.
{% endstep %}

{% step %}

#### Correct shares settle at $1

Every share of the correct outcome is redeemed for **$1**. Shares of the other outcome settle at **$0**.
{% endstep %}

{% step %}

#### **Your balance updates automatically**

The USDC from your settled shares is credited straight to your wallet balance — nothing to claim, nothing to do. Settled positions move to your [Portfolio history](https://docs.strixlab.io/getting-started/positions-portfolio).
{% endstep %}
{% endstepper %}

### Example

You hold 200 Yes shares in *"Will the home team win?"*, bought at an average of 60¢ (cost: $120).

* **If the outcome happens:** 200 × $1 = **$200** credited — an $80 profit.
* **If it doesn't:** the shares settle at $0 — your $120 cost is the full extent of the loss.

{% hint style="info" %}
Remember, you don't have to hold to settlement: you can [sell your shares](https://docs.strixlab.io/getting-started/place-your-first-trade#selling-and-closing-out) any time the market is open, to take gains or limit losses early. Settlement only matters for positions you still hold when the event concludes.
{% endhint %}

### Where outcomes come from

Every market names, in its description, the **authoritative source** its settlement is based on — for example, the official final score of a match, a published economic figure, or an asset's price from a stated feed at a stated time.

{% hint style="warning" %}
**Before you take a position, read the market's description and settlement criteria.** They define *exactly* what counts as Yes — including edge cases like extra time, revised figures, or timezone cutoffs. The criteria, not the headline question, are what the market settles on.
{% endhint %}

### Timing

Most markets settle shortly after the event concludes and the result is confirmed. Events with a defined end time — like an asset price at a specific date — settle automatically at that time; others settle once the official result is published by the named source.


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