> For the complete documentation index, see [llms.txt](https://learn.trovemarkets.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.trovemarkets.com/trove-x-polymarket/polymarket-example.md).

# Polymarket: Example

### Example: pricing & arbitrage

* **Polymarket (Validator midpoint, 0–100 normalized):** 64.0
* **Trove Mark:** 59.5
* **EMA (illustrative):** 62.0
* **Oracle (illustrative):** (59.5 + 64.0 + 62.0)/3 = 61.8

Here, Mark < Oracle → longs receive funding.

**Step-by-step intuition**

1. Polymarket midpoint implies “YES \~64%”
2. Trove is trading “YES \~59.5%”
3. Oracle blends these with a smoother to get 61.8
4. Since Trove Mark is below Oracle, funding should pay longs to pull Mark upward

> Arbitrage desk might buy Trove (59.5) and sell Polymarket (≈64.0), earning funding + potential basis convergence.

***

### Lifecycle & settlement

* **Listing:**
  * Only high-attention Polymarket markets with ≥6 months horizon
* **During life:**
  * Standard Trove perp trading (Market/Limit), hourly funding cycles, risk controls
* **At event resolution:**
  * Oracle settles to 0 or 100 based on Polymarket’s official market resolution (via UMA’s Optimistic Oracle process); Trove perps remain cash-settled (no physical delivery) [Polymarket Documentation](https://docs.polymarket.com/developers/resolution/UMA?utm_source=chatgpt.com)

**What “cash-settled” implies mechanically**

At resolution:

* the oracle value hard-sets to **0 or 100**
* all open positions are marked at that terminal value
* PnL is realized in USDH through standard perp settlement logic\
  No delivery, no share redemption requirement for the end trader on Trove.

> Exact resolution sources & timestamps are shown on the Transparency Dashboard, with the ruleset link per market.


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