How Prediction Market Payouts Work: Settlement & Returns
Payouts in prediction markets are the amounts distributed to winning shareholders when a market resolves. Winning shares pay $1, losers pay $0.
Definition
A payout is the amount of money distributed to holders of winning shares when a prediction market resolves. In standard binary markets, winning shares pay $1.00 and losing shares pay $0.00.
Calculating Your Return
Your profit (or loss) is straightforward:
Profit = Payout - Purchase Price
| Bought At | Outcome | Payout | Profit | Return |
|---|---|---|---|---|
| $0.30 | Win | $1.00 | $0.70 | +233% |
| $0.50 | Win | $1.00 | $0.50 | +100% |
| $0.80 | Win | $1.00 | $0.20 | +25% |
| $0.60 | Lose | $0.00 | -$0.60 | -100% |
The lower the price you buy at, the higher your potential return — but also the lower the market’s estimated probability of winning.
When Payouts Happen
On traditional platforms, payouts may take hours or days as operators verify outcomes and process withdrawals. On Purrdict, payouts are instant: the moment a market resolves on-chain, winning shares are automatically settled and funds are available in your balance.
Partial Exits
You do not have to wait for resolution to realize a profit. If you buy YES shares at $0.40 and the price rises to $0.75, you can sell your shares on the open market for an immediate $0.35 per share profit.