> For the complete documentation index, see [llms.txt](https://limelight-1.gitbook.io/limelight-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limelight-1.gitbook.io/limelight-docs/knowledge-base/market-lifecycle-and-disputes.md).

# Market Lifecycle & Disputes

Every market on Limelight moves through the same lifecycle. This page explains each stage, how resolution works, and how to dispute an outcome.

## The Stages

`Created → Pending → Active → Resolved → Dispute Period → Closed`

<table><thead><tr><th width="182">Stage</th><th>What happens</th></tr></thead><tbody><tr><td><strong>Created</strong></td><td>A market has been defined (question, outcomes, observation window, resolution rules) and submitted.</td></tr><tr><td><strong>Pending</strong></td><td>Admin review checks rule clarity, source credibility, and observation-window completeness before the market goes live.</td></tr><tr><td><strong>Active</strong></td><td>Trading is open. Buy and sell shares; prices move via the LS-LMSR curve.</td></tr><tr><td><strong>Resolved</strong></td><td>The observation window has ended and an outcome is posted.</td></tr><tr><td><strong>Dispute Period</strong></td><td>A challenge window (typically 24–48 hours) during which any user can dispute the outcome by posting a bond.</td></tr><tr><td><strong>Closed</strong></td><td>The outcome is final. Winners redeem ~$1.00/share; losers get $0.00.</td></tr></tbody></table>

## How Resolution Works

* **Price markets** resolve automatically against a **Pyth** price feed read on-chain in the resolution transaction.
* **Event markets** resolve from the external sources named in the market's rules.

The resolver enforces each market's **observation window** — only data points timestamped between the market's start and end are considered. Pre-creation data is rejected by default, which prevents historical prices from triggering false resolutions on threshold markets.

## The Dispute Period

The dispute window is the one chance to correct a bad resolution before a market closes.

* Any user can **submit a dispute** by posting a **dispute bond**.
* The **Judge Team** (the admin team plus verified users) reviews the evidence and either **approves** the change (outcome updates, bond returned) or **rejects** it (outcome stands, bond may be forfeited).
* **Correct resolutions** — including successful disputes — earn **+100 LP**. **Incorrect or frivolous** disputes incur a **−500 LP** penalty in addition to any bond forfeiture.

> Once a market is **Closed**, the outcome is permanent. The dispute window is the only opportunity to fix an error.

## Void Resolution

A market resolves as **Void** when its rules can't produce a definitive outcome — the event was cancelled, the data source went offline, or the actual result doesn't fit any listed option. All stakes are returned; no one wins or loses. Void is a resolution state, not a way to fix a wrong resolution after the fact.

## FAQ

<details>

<summary>Can an outcome be changed after the market closes?</summary>

No. The dispute window is the one chance to correct errors before closure.

</details>

<details>

<summary>What if the oracle pulls bad data?</summary>

That's what the dispute period is for. Submit a dispute with evidence showing the correct data, and the Judge Team will review.

</details>

<details>

<summary>Do I earn LP for correct disputes?</summary>

Yes. Correct resolutions (including successful disputes) earn +100 LP. Incorrect or frivolous disputes incur a −500 LP penalty plus bond forfeiture.

</details>


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