Polymarket is a prediction-market platform where participants trade positions tied to event outcomes. Prices are commonly read as implied probabilities: a share priced at $0.60 corresponds to a market-implied 60% chance of its outcome. Settlement follows the market's resolution rules, rather than a trader's interpretation of its headline.12

Trading and collateralReport an errorSuggest an improvement

The international platform uses a hybrid order book. Orders are created offchain, matched by an operator, and settled through smart contracts. Blockchain settlement therefore coexists with an operator responsible for matching; it does not imply that every part of a trade happens through a permissionless onchain order book.3

As of October 2026, Polymarket's documentation identifies pUSD as its collateral token on Polygon. It describes pUSD as an ERC-20 token backed by USDC, with wrapping and withdrawal functions enforced by collateral contracts. A balance used for trading should consequently be distinguished from a direct balance of native USDC in a wallet.4

The displayed price is normally the midpoint between the best bid and ask; the documentation says it uses the last trade when the spread is wider than ten cents. A displayed probability is therefore not necessarily the price at which a trader can buy or sell the desired quantity. Available bids, asks, and depth determine execution.1

ResolutionReport an errorSuggest an improvement

A market's rules specify its resolution source, end date, and treatment of ambiguous cases. In an ordinary binary resolution, winning shares redeem for $1 and losing shares become worthless. The documentation also allows an unknown or 50–50 resolution in which each outcome token redeems for $0.50. An apparently straightforward question may require a particular announcement or data source.2

The documented UMA process allows a proposer to post a bond and nominate an outcome, followed by a challenge period. Disputed cases can reach UMA token-holder voting. Polymarket separately documents Chainlink time-weighted average prices for up-down markets, so it would be incorrect to describe every market as using the same resolution path.2

Regulation and the US exchangeReport an errorSuggest an improvement

On 3 January 2022, the US Commodity Futures Trading Commission settled charges against Blockratize, doing business as Polymarket. The CFTC found that it had offered event-based binary options without the required registration or designation. The order imposed a $1.4 million penalty and required non-compliant markets to be wound down.5

That historical order should be read separately from the later US exchange. As of October 2026, the CFTC's register lists QCX LLC, doing business as Polymarket US, as a designated contract market, with an original designation date of 9 July 2025. The register identifies the specific legal entity; it does not establish that every product or international service carrying the Polymarket name has the same regulatory status.6

On 28 October 2026, Michigan's gaming regulator announced that Polymarket US had agreed to stop offering new sports-related event contracts to Michigan customers and close remaining positions by 25 November. The regulator said Polymarket's appeal of an earlier injunction ruling remained pending. As of 31 October, federal designation had therefore not eliminated disputes over state gambling regulation.7

October 2026 security incidentReport an errorSuggest an improvement

On 29 October 2026, Polymarket temporarily halted trading after a security incident involving a third-party provider. Reuters reported the company's statement that it had fixed the issue, restored trading, referred the incident to UK law enforcement, and would reimburse affected traders. That statement was a reimbursement commitment, not confirmation that all reimbursements had been completed as of 31 October.8

See alsoReport an errorSuggest an improvement

ReferencesReport an errorSuggest an improvement

  1. ^ a b Polymarket documentation. Prices & Orderbook. https://docs.polymarket.com/concepts/prices-orderbook 

  2. ^ a b c Polymarket documentation. Resolution. https://docs.polymarket.com/concepts/resolution 

  3. ^ Polymarket documentation. Order Lifecycle. https://docs.polymarket.com/concepts/order-lifecycle 

  4. ^ Polymarket documentation. Polymarket USD. https://docs.polymarket.com/concepts/pusd 

  5. ^ CFTC (2022-01-03). CFTC Orders Event-Based Binary Options Markets Operator to Pay $1.4 Million Penalty. https://www.cftc.gov/PressRoom/PressReleases/8478-22 

  6. ^ a b CFTC. Designated Contract Markets: QCX LLC d/b/a Polymarket US. https://www.cftc.gov/IndustryOversight/IndustryFilings/TradingOrganizations/49571 

  7. ^ Michigan Gaming Control Board (2026-10-28). Polymarket backs down as Michigan's relentless crackdown on unlicensed sports betting continues. https://www.michigan.gov/mgcb/news/2026/10/28/polymarket-backs-down-in-michigan 

  8. ^ Reuters (2026-10-29), republished by StreetInsider. Polymarket resumes trading after third-party security breach, to reimburse users. https://new.streetinsider.com/Reuters/Polymarket%2Bresumes%2Btrading%2Bafter%2Bthird-party%2Bsecurity%2Bbreach,%2Bto%2Breimburse%2Busers/27256837.html