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Settlement Value
Settlement value is the amount assigned to a prediction contract when the market is resolved. In a common binary structure, the winning outcome settles at $1 and the losing outcome at $0. Other contract structures may use different values.
Why it matters to you
The difference between the price paid and the eventual settlement value determines the economics of holding the contract to resolution. For example: Buy YES at $0.60 YES resolves successfully. Settlement value = $1.00 Gross gain before fees and other costs: $0.40 per contract
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