> For the complete documentation index, see [llms.txt](https://polymarketguide.gitbook.io/polymarketguide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://polymarketguide.gitbook.io/polymarketguide/rules/clarifications/effects.md).
# Clarification Effects
Clarifications have several effects on trading and resolution.
### Effect on Orderbook
When Polymarket issues a clarification, the **orderbook is cleared and all resting orders are cancelled**. If a possible clarification is announced in advance, Polymarket may specify a later time when the orderbook will be cleared.
*Example*: In *Will Venezuela recognize Israel by December 31?*, Polymarket announced that a possible clarification would be issued at 3:00 PM ET and that the orderbook would be cleared at that time regardless of whether a clarification was ultimately made.
### Effect on Price Action
Clarifications often determine whether a market resolves immediately or remains open. This can cause the price to spike to 100¢ or drop sharply after the clarification.
*Example*: In *Will Trump talk to Luiz Inácio Lula da Silva in October?*, Polymarket clarified that talks between the two before the market was created would not count toward resolution. The price fell from 93¢ to 54¢ following the clarification.
### Effect on Resolution
Clarifications can directly determine how and whether a market resolves. They often confirm whether an event met the resolution criteria.
*Example*: In *Will Powell say "inflation" 50+ times during September's press conference?*, traders counted 49 mentions but disagreed about one timestamp. Polymarket clarified that Powell did say "inflation" during that moment, and the market resolved to Yes.
### Anticipation and Market Behavior
Anticipation of a clarification can affect both market volatility and trader behavior.
#### Volatility
When traders expect a clarification, markets can become volatile. Because a clarification can instantly resolve a market, even small hints or pre-announcements can trigger large price swings.
*Example*: In *Will Ghislaine Maxwell testify before Congress in 2025?*, the price ranged between 35¢ and 50¢ as traders anticipated a clarification.
#### Strategic Manipulation
Some users may try to profit from this volatility. For example, a group of traders may buy shares at 1¢, push for a clarification, and sell at 5¢ if uncertainty drives the price higher.
Others may try to create doubt about the likely outcome to drive down prices and buy winning shares at a discount.
*Example*: A trader stirring concern among others to drive down prices and buy winning shares at a discount.
