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Prediction

Resolution Risk.

The risk that wording, sources or ambiguous real-world events produce an unexpected market outcome.

PLAIN ENGLISH

What does Resolution Risk mean?

Resolution risk exists when the market question and the real world do not line up cleanly, creating uncertainty about how rules will be interpreted even after the event occurs.

IN THE WILD

How people use it

Used on prediction-market platforms and in event-contract trading.

EXAMPLE“The trade looks obvious, but the resolution risk is nasty.”
ALSO USED AS

settlement risk

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