How does settlement logic work in a prediction marketplace system?|Article Discussion|Forum|SNES HUB

Settlement logic is what actually finishes a trade after an event ends.

Users place predictions like yes or no and lock their amount. Once the event result is confirmed from a trusted source, the system compares it with all user predictions.

Then it identifies who was right and who was wrong. Based on that, the system distributes the pooled funds. Winners get paid according to their position size and odds, while others lose their stake.

If the event is cancelled or unclear, the system can return funds instead.

In prediction marketplace development, this logic runs automatically so payouts happen correctly without manual work and everything stays fair.