> 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/what-is-precedent.md).

# What is Precedent?

Precedent refers to the use of **past resolutions** as references for resolving new disputes. When a proposal is disputed, UMA stakeholders may look at how similar cases were resolved in the past. This helps keep resolutions consistent and predictable.

Precedent is generally not established by a single resolution. Instead, it develops when multiple proposals follow a **consistent pattern**. When discussing a dispute, stakeholders may also consider how a decision could affect existing precedents or create new ones.

UMA community members typically treat established precedent as **strong evidence**, with Polymarket clarifications generally taking priority. For example, in P4 cases, if precedent requires waiting for the next data point, evidence supporting a P1 or P2 outcome may not be enough to override that precedent.

However, whether a precedent applies can itself be disputed. Stakeholders may disagree over whether a past resolution actually established a precedent, whether that precedent is still valid or relevant, whether the situations are sufficiently similar, or whether the original resolutions were correct.

Precedents are also **market-specific**. A precedent established for one type of market, such as the NBA, may not apply to another, such as F1.

### Guiding Principles

* Precedent generally develops through repeated, consistent resolutions rather than a single case.
* Precedents apply only within their relevant market context.
* Precedents may be overturned if the underlying resolutions are found to be incorrect.