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% Document Info
\author{Legal Fellow (legal)}
\pdfinfo{
  /Title (prediction-market-resolution.pdf)
  /Creator (Cheatography)
  /Author (Legal Fellow (legal))
  /Subject (Prediction Market Resolution Cheat Sheet)
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    \vspace{-2pt}\large{\bf{\textcolor{DarkBackground}{\textrm{Prediction Market Resolution Cheat Sheet}}}} \\
    \normalsize{by \textcolor{DarkBackground}{Legal Fellow (legal)} via \textcolor{DarkBackground}{\uline{cheatography.com/217357/cs/48088/}}}
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  \mymulticolumn{2}{p{5.377cm}}{\bf\textcolor{white}{Cheatographer}}  \\
  \vspace{-2pt}Legal Fellow (legal) \\
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        \uline{\seqsplit{legalbison}.com/}
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  \mymulticolumn{1}{p{5.377cm}}{\bf\textcolor{white}{Cheat Sheet}}  \\
   \vspace{-2pt}Published 12th May, 2026.\\
   Updated 12th May, 2026.\\
   Page {\thepage} of \pageref{LastPage}.
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  Measure your website readability!\\
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\begin{tabularx}{17.67cm}{x{6.0445 cm} x{11.2255 cm} }
\SetRowColor{DarkBackground}
\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Polymarket: The Optimistic Oracle}}  \tn
% Row 0
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{\bf{Mechanism}} & Connects to UMA's Optimistic Oracle. The system assumes a submitted outcome is correct unless someone challenges it within a specific time window. \tn 
% Row Count 6 (+ 6)
% Row 1
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{\bf{Dispute Resolution}} & Challenged outcomes escalate to token-holder voting. The winning majority receives rewards funded by the losing side's slashed bond. \tn 
% Row Count 12 (+ 6)
% Row 2
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{\bf{Regulatory Impact}} & Relying on an external decentralized oracle removes the platform operator from outcome determination. This limits control over user funds and simplifies compliance in strict jurisdictions. \tn 
% Row Count 20 (+ 8)
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\mymulticolumn{2}{x{17.67cm}}{Polymarket prioritizes speed while maintaining decentralized security through a challenge-response model.}  \tn 
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\end{tabularx}
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\begin{tabularx}{17.67cm}{x{6.0445 cm} x{11.2255 cm} }
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\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Augur: Absolute Decentralization}}  \tn
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{\bf{Mechanism}} & Community members report outcomes and stake the native REP token. \tn 
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% Row 1
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{\bf{Dispute Resolution}} & Disagreements trigger staking wars. Extreme disputes cause the network to "fork," forcing users to abandon the alternate reality. \tn 
% Row Count 8 (+ 5)
% Row 2
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{\bf{Regulatory Impact}} & Eliminating centralized control makes it difficult for regulators to assign operator liability. The associated 60-day resolution delay creates significant friction for users. \tn 
% Row Count 15 (+ 7)
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\mymulticolumn{2}{x{17.67cm}}{Augur relies on absolute economic consensus to resolve markets without centralized adjudicators.}  \tn 
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\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Manifold Markets: Reputation and Centralization}}  \tn
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{\bf{Mechanism}} & The individual who creates the market acts as the sole arbiter and resolves it manually. \tn 
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{\bf{Dispute Resolution}} & Fraud is prevented by social consequences. Dishonest creators lose their reputation, and the community boycotts their future markets. \tn 
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{\bf{Regulatory Impact}} & Using manual resolution with real capital fundamentally mirrors a traditional sportsbook. Operating this model legally requires full gaming authorizations, such as a Malta gambling license. \tn 
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\mymulticolumn{2}{x{17.67cm}}{Manifold relies on the social layer and creator reputation rather than blockchain consensus.}  \tn 
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\mymulticolumn{2}{x{17.67cm}}{\bf\textcolor{white}{Delegated Arbitration (Kleros)}}  \tn
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{\bf{Mechanism}} & Smart contracts call upon external juror networks when disputes arise. \tn 
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{\bf{Dispute Resolution}} & Jurors stake tokens to review evidence and vote. Game theory aligns incentives by rewarding those who match the majority consensus. \tn 
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\mymulticolumn{2}{x{17.67cm}}{Platforms can outsource resolution to specialized, decentralized court networks.}  \tn 
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\mymulticolumn{1}{x{17.67cm}}{\bf\textcolor{white}{Structural Alignment}}  \tn
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\mymulticolumn{1}{x{17.67cm}}{Choosing between external oracles, token-weighted voting, or centralized administrative control alters a project's risk profile completely. Consult \{\{link="https://legalbison.com/gambling-license/"\}\}licensing experts\{\{/link\}\} for international corporate structuring and regulatory compliance guidance to match a company's operational reality with its technical deployment. Aligning oracle mechanics with a grounded legal architecture ensures the platform remains both technically resilient and commercially viable.% Row Count 11 (+ 11)
} \tn 
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