# How Settlement Price is Determined

Settlement price is the final value applied to your position when a market resolves. It is not based on the last traded price. It is based on the rules defined for the market and verified external data sources.

## The Core Principle

| Concept          | Source           | Meaning                |
| ---------------- | ---------------- | ---------------------- |
| Market Price     | Order book       | What traders believe   |
| Settlement Price | Rules and Oracle | What actually happened |

## For Prediction Markets and Yield Farm

Settlement is rule based. No price feed or oracle is required.

```
Event occurs
Outcome verified via official source
Smart contract assigns $1 to winner, $0 to loser
```

## For Price Based Markets

For Options, Pre IPO, and Pre TGE markets, settlement depends on the final value of the underlying asset at expiry, obtained via oracle.

**Oracle sources:** Bybit, Binance, Hyperliquid, Chainlink.

## Settlement Flow

1. Market reaches expiry and trading stops.
2. Oracle fetches final reference price.
3. Market rules are applied.
4. Smart contracts compute and distribute payouts.
5. Positions update in your Portfolio automatically (MegaETH markets). Solana markets require manual redemption.

## RWA Markets

RWA markets have no settlement price. They are perpetual. The only price that matters is the bid at the time you sell.

{% hint style="warning" %}
If data sources conflict, a predefined hierarchy determines which source wins. If no reliable data is available, the market may be cancelled and positions refunded.
{% endhint %}


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