Resolution Guide

Resolution Guide

This guide explains how Yosoku markets are resolved, including the two-tier UMA resolution system, wallet voting, and the redemption process.

Resolution Overview

Every prediction market must eventually resolve to determine the winning outcome. Yosoku supports two resolution mechanisms:

1. UMA Resolution: Decentralized oracle with dispute escalation

2. Wallet Vote Resolution: Designated voters determine outcome

The resolution type is set at market creation and cannot be changed afterward.

Market States

Markets progress through the following states:

State	Description	Trading	Resolution
Active	Normal trading	Enabled	Not started
Proposed	Outcome proposed, dispute window open	Enabled	In progress
Disputed	Escalated to UMA Oracle	Enabled	Pending UMA
Resolved	Final outcome determined	Disabled	Complete

UMA Resolution (Two-Tier System)

UMA Resolution uses an optimistic oracle pattern with economic incentives to ensure honest reporting.

Tier 1: Proposal

Any participant can propose an outcome for a market.

To propose a resolution:

1. Navigate to the market

2. Click "Propose Resolution"

3. Select the outcome (Yes, No, or Split)

4. Deposit the proposer bond (100 USDC)

5. Submit the proposal

After submission:

• A 24-hour dispute window begins

• The proposal is visible to all participants

• Trading continues during this window

Tier 2: Dispute

If someone believes the proposal is incorrect, they can dispute it.

To dispute a resolution:

1. Navigate to the proposed market

2. Click "Dispute"

3. Deposit the disputer bond (200 USDC)

4. Submit the dispute

After dispute:

• The market enters "Disputed" state

• The dispute is escalated to UMA Oracle via LayerZero

• UMA token holders vote on the correct outcome

• Resolution is determined by UMA's decision

Dispute Window

Parameter	Value
Duration	24 hours
Start	When proposal is submitted
End	24 hours after proposal

If no dispute occurs within the window, the proposal is finalized automatically.

Finalization

Undisputed proposals:

1. Wait for the dispute window to close

2. Anyone can call "Finalize Resolution"

3. Proposer's bond is returned

4. Market is resolved to the proposed outcome

Disputed proposals:

1. UMA Oracle determines the outcome

2. Resolution is received via LayerZero

3. Winner claims both bonds (minus protocol fee)

4. Market is resolved per UMA's decision

Bond Economics

Scenario	Proposer	Disputer
Correct proposal, no dispute	Gets 100 USDC back	N/A
Correct proposal, loses dispute	Loses 100 USDC	Gets ~100 USDC
Wrong proposal, disputed	Loses 100 USDC	Gets ~100 USDC
Wrong proposal, wins dispute	Gets ~100 USDC	Loses 1000 USDC

The higher disputer bond discourages frivolous challenges while still enabling legitimate disputes.

Claiming Dispute Winnings

After UMA resolution:

1. Navigate to the resolved market

2. If you won the dispute, click "Claim Winnings"

3. Receive the combined bonds minus protocol fee

Wallet Vote Resolution

For markets requiring trusted resolution, designated voters determine the outcome.

How Voting Works

1. Market creator designates voter wallets at creation

2. After the event deadline, voters can cast votes

3. Each voter casts one vote: Yes, No, or Split

4. Majority (>50%) determines the outcome

Casting a Vote

To vote on a market:

1. Connect your designated voter wallet

2. Navigate to the market awaiting resolution

3. Select your vote (Yes, No, or Split)

4. Submit your vote

Changing Your Vote

Votes can be changed until resolution is finalized:

1. Navigate to the market

2. Cast a new vote

3. Your previous vote is replaced

Vote Resolution Outcomes

Condition	Result
Majority votes Yes	Market resolves to Yes
Majority votes No	Market resolves to No
Majority votes Split	Market resolves to 50/50
No majority by deadline	Market resolves to 50/50

Deadline-Based Finalization

If no majority is reached:

1. Wait for the event deadline to pass

2. Anyone can call "Finalize Vote Resolution"

3. Market resolves to 50/50 split

4. All shares redeem at $0.50

Expired Market Resolution

Markets that pass their deadline without any resolution proposal can be resolved to a 50/50 split.

Requirements

• Event deadline has passed

• No resolution proposal exists

• Market is still active

Process

1. Anyone can call "Resolve Expired Market"

2. Market immediately resolves to 50/50 split

3. Yes and No shares both redeem at $0.50

This ensures markets don't remain unresolved indefinitely.

Redemption

After resolution, share holders can redeem their positions.

Payout Structure

Outcome	Yes Shares	No Shares
Yes wins	$1.00 each	$0.00 each
No wins	$0.00 each	$1.00 each
50/50 Split	$0.50 each	$0.50 each

Redeeming Your Position

1. Navigate to your positions

2. Find positions in resolved markets

3. Click "Redeem"

4. Receive USDC payout

5. Position account is closed

Redemption Notes

• Redemption is available immediately after resolution

• No time limit on redemption

• Position account rent is returned to your wallet

• Losing positions can still be redeemed (returns $0 but closes account)

Resolution Timeline Summary

UMA Resolution Flow

Market Created → Trading Active → Proposal Submitted → 24h Window
                                         ↓                    ↓
                                    Disputed?            No Dispute
                                         ↓                    ↓
                                   UMA Oracle            Finalized
                                         ↓                    ↓
                                   Resolution ←──────────────┘
                                         ↓
                                   Redemption

Wallet Vote Flow

Market Created → Trading Active → Deadline Passes → Voting Period
                                                          ↓
                                                    Majority?
                                                    ↓       ↓
                                                  Yes      No
                                                    ↓       ↓
                                              Resolved  50/50 Split
                                                    ↓       ↓
                                              Redemption ←──┘