Clarification Purpose
Clarifications usually do one of three things:- Clarify timing or wording that could be interpreted more than one way
- State whether a specific event satisfies the rules
- Define which resolution sources count for the market
Effect on Orderbooks
Before a clarification is posted:- Liquidity may be reduced
- Spreads may widen
- Volatility can increase when there is uncertainty
Effect on Shares
After a clarification is posted:- It removes ambiguity about what counts
- It can confirm whether the rule conditions have been met
- It can clarify whether the market should continue trading or is eligible for resolution
Examples
Timing Interpretation
- Rule ambiguity: The rules require an event to occur “by the end of the quarter.”
- Clarification: Only events occurring on or before a stated cut-off time count.
- Effect: Defines the exact timing threshold.
Event Qualification
- Rule ambiguity: The rules require “an official announcement” but do not specify the communication channel.
- Clarification: Only announcements published through the designated official channel count.
- Effect: Specifies which announcements qualify as the event.
Source Specification
- Rule ambiguity: The rules require confirmation “from official data.”
- Clarification: Only data published by the designated official source counts.
- Effect: Identifies the authoritative source used for resolution.
Key Points
- Clarifications add context when rule wording is ambiguous
- They explain how timing, qualification, or sourcing should be interpreted
- Polymarket clears the order book when a clarification is posted
- Clarifications can confirm whether rule conditions have been met