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Market Creation

Polymarket lists markets tied to real-world events with clear, verifiable outcomes. Markets cover major categories such as politics, sports, and news events. The Markets Team evaluates trending topics, reliable data sources, and user suggestions to decide which events to list. When selecting new markets, Polymarket prioritizes:
  • Relevance: Events with meaningful public interest
  • Clarity: Outcomes that can be verified using trusted public sources
  • Demand: Topics users are actively searching or trading
  • Integrity: Alignment with U.S. compliance and operational standards
All markets undergo review before launch to ensure they can be resolved using transparent and publicly verifiable information.

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Market Structure

Each market on Polymarket US has one instrument representing a specific outcome. You take positions by buying or selling (shorting) that single instrument. Every binary market has only one instrument:
  • Buying the instrument = betting YES on that outcome
  • Selling (shorting) the instrument = betting NO on that outcome
Example: NFL game between Team A and Team B
  • There is one instrument: “Team A wins”
  • Go long (buy) = you think Team A will win
  • Go short (sell) = you think Team A will lose (Team B wins)

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Buying vs Shorting

Buying (Going Long)
  • You pay the current price (e.g., $0.70)
  • If the outcome happens, you receive $1.00
  • If the outcome doesn’t happen, you receive $0.00
  • Maximum profit: $1.00 minus purchase price
  • Maximum loss: your purchase price
Shorting (Going Short)
  • You receive the current price (e.g., $0.70)
  • If the outcome happens, you pay $1.00
  • If the outcome doesn’t happen, you pay $0.00
  • Maximum profit: sale price
  • Maximum loss: $1.00 minus sale price
There are no separate “No” shares to trade. To bet NO on an outcome, you short the instrument. This creates a synthetic NO position with the same profit/loss as if you owned a NO share.

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Market Rules

Market rules follow a consistent structure. Each part contributes to how the final outcome is determined.

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Resolution Criteria

Market rules begin with the resolution criteria. The criteria describe the conditions for the market to resolve to Yes or No. Any alternative settlement terms also appear here, including situations where the market settles at 0.50.

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Qualifying Requirements

If additional clarity is needed, the rules may include qualifying requirements, non-examples, and edge-case scenarios to show how resolution applies in specific situations.

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Resolution Timeframe

Rules specify when the outcome is evaluated.

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Resolution Sources

Rules list the official sources used to confirm the outcome. Unlisted sources have no effect on resolution.

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Market Clarification

Markets resolve based on the rules shown on the market page. Sometimes the rules need extra clarity. When that happens, Polymarket may clarify how the rules should be understood. Clarifications provide additional context when rule wording can be interpreted in more than one way. They specify how the existing rules should be understood, resolve ambiguous language, and ensure markets resolve according to the intended criteria.

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When Clarifications Are Added

Clarifications are added when:
  • A rule could be read in more than one way
  • A detail in the description needs to be specified
  • An event develops in a way that raises a question about what counts
  • Timing or wording could be interpreted more than one way
  • It needs to be stated whether a specific event satisfies the rules
  • Resolution sources need to be defined for the market

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Where Clarifications Appear

Clarifications appear at the top of the rules section as an Additional context message.

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Effect on Orderbooks

When a clarification is posted, Polymarket clears the order book so that resting orders are not executed under clarified rules.

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Effect on Contracts

After a clarification is posted:
  • It removes ambiguity about what counts
  • It can confirm whether the rule conditions have been met
  • It can clarify whether the market should continue trading or is eligible for resolution
Clarifications add context to explain the rules — they do not change the market question. Always read the rules and any clarifications before trading.

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Market Settlement

Markets stay open until the event is over. Once the outcome becomes publicly known, the Exchange determines the result using publicly verifiable information.

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How Market Outcomes Are Determined

Each market asks a clear question about a real-world event. When the outcome becomes publicly known, the Exchange confirms it using the criteria defined in the market’s description and rules. Markets resolve using the specific sources listed in the rules. These sources provide the authoritative outcome. Unlisted sources have no effect on market resolution.

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Types of Resolution Sources

Government: Government providers supply final, authoritative data for political, economic, and administrative outcomes (e.g., Congress, Bureau of Labor Statistics, National Weather Service). Sports: Sports markets resolve using results published by the governing league or competition organizer. News: Some markets use news outlets as resolution sources. When the rules list specific outlets, resolution comes from those exact outlets.

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Timing of Resolution

  • Sports markets: Often resolve shortly after the official result is posted
  • Political or news markets: May take longer if certification or official publication is required
  • Complex events: May require additional verification before resolution

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After Resolution

When a market resolves:
  • Winning contracts settle at $1.00
  • Losing contracts settle at $0.00
  • Your Portfolio updates automatically when settlement completes

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Alternative Settlement

Some markets include predefined settlement terms that differ from the standard $1/$0 structure. When alternative settlement applies, Polymarket Clearing follows the instructions in the market’s Settlement Description.