# How Do Markets Resolve?

Markets resolve when someone proposes an outcome that satisfies the market's resolution criteria. If the event occurs, the market resolves **Yes**; if it doesn't happen by the deadline, it resolves **No**. In disputed or unclear cases, resolution may involve community discussion and a vote.

### The Resolution Process

Polymarket uses UMA, a decentralized oracle, to resolve markets through the following process:

1. **Proposal**: A user submits an answer and stakes a bond (usually **$750**).
2. **Challenge Window (2 hours)**: Anyone can challenge the proposal during this period.
3. **If Not Challenged**:
   * The proposal is automatically accepted.
   * The proposer receives their bond plus a reward (usually **$5**).
   * Accepted proposals cannot be challenged later.
4. **If Challenged**:
   * The challenger stakes the same bond amount (usually **$750**).
   * A community discussion begins around the disputed proposal.
   * In the next voting cycle (starts within 0–48 hours), UMA token holders vote on the correct outcome.
   * The winning side receives a portion of the losing bond and any reward.

{% hint style="info" %}
**Bond and Reward**: Most market proposals require a **$750** bond with a **$5** reward. Higher-volume markets may require more.

**Resolution**: The losing bond is split between the winning side and the UMA Foundation. For **$750** disputes, the winning side receives **$250** of the loser's bond.&#x20;
{% endhint %}

Let's take a look at a successful and disputed proposal.

{% tabs %}
{% tab title="Successful Proposal" %}
Market: _Will the US confirm that aliens exist in 2025?_

1. **Proposal**: Akira believes the event has happened and proposes **Yes**, staking a **$750** bond.&#x20;
2. **Challenge Window**: No one challenges Akira's proposal within 2 hours.
3. **Result**: Akira's proposal is automatically accepted. He receives **$755** (bond + $5 reward), and the market resolves **Yes**.
{% endtab %}

{% tab title="Disputed Proposal" %}
Market: _Will the US confirm that aliens exist in 2025?_

1. **Proposal**: Akira proposes **Yes**, staking **$750**.
2. **Challenge**: Sakura believes the answer is wrong and, within the 2-hour challenge period, disputes it by staking **$750**.
3. **Discussion & Vote**: A community discussion is created, and UMA stakers vote on the outcome in the next voting cycle.
4. **Outcome**: The vote sides with Sakura. Sakura receives **$1,000** (her $750 bond + $250 of Akira's bond). Akira loses his bond. The market resolves **No**.
{% endtab %}
{% endtabs %}

#### What's Next

Now that you've learned how markets resolve, let's explore what happens when proposals are disputed.
