Market Resolution & Settlement

​

How does settlement work?

Flew uses a pool-based model. All bets flow into encrypted YES or NO pools during the live phase. At resolution, winners split the total losing pool proportionally based on their share of the winning pool.

​

Payout formula

$$\text{Payout} = \frac{\text{Your Bet}}{\text{Total Winning Pool}} \times \text{Total Losing Pool}$$ Where all pool values are net of fees. LP and protocol fees are deducted from each pool before this ratio is applied, so the amounts you see in the formula are already fee-adjusted.

​

The resolution lifecycle

​

1. Market closes

Once the closing time is reached, betting stops. No new positions can be placed.

​

2. Resolver calls the outcome

An authorized resolver submits the outcome (YES or NO) on-chain.

​

3. Arcium reveals pool totals

Arcium’s confidential computation reveals the encrypted pool totals needed for settlement, without exposing individual bets.

​

4. Winners claim payouts

Winners can claim their proportional share from the My Positions tab. The market creator can also claim accumulated LP fees at this point.

​

5. Unresolved markets and refunds

If the market is not resolved within the allowed window, participants can claim a full refund of their bet. The creator’s bond may be forfeited in this case.

​

What is the pricing mechanism?

Flew is not LSMR-based. It uses a straightforward pool-based (parimutuel) model:

• All bets on the winning side split the losing pool proportionally.
• There is no automated odds curve like LSMR or CPMM.
• Odds implied by the pool ratio update as bets come in, but this happens inside encrypted state and is not visible on-chain during the live phase.

​

Resolver trust

In the current design, resolution is initiated by an authorized resolver, not a fully trustless oracle. Protocol safeguards like deadline enforcement and refund paths exist to protect users if a resolver fails to act.