>>Can anyone comment on how settlement actually works? The Augur whitepaper[1] explains the gory details, but at a higher level when the market creator defines

>>Can anyone comment on how settlement actually works? The Augur whitepaper[1] explains the gory details, but at a higher level when the market creator defines the prediction market and event states through a smart contract, they must also specify the "designated reporter" and the "resolution source". The designated reporter should be somebody you trust (perhaps even yourself) to report on the event using the specified data source. If the final event state is invalid, then you (the market creator) forfeit your validity bond, which is a form of punishment for creating a market that ends up in a state of ambiguity. If the event state is valid (i.e. one of the set of outcomes that can be unambiguously determined) then the settlement proceeds. After settlement finalizes, reporters get their REP token payout, market creators take their ETH cut, and traders who still hold shares corresponding to the settled reported outcome get their ETH. I believe each reporting cycle is still 7 days. There are some edge cases where an event outcome can be disputed by other reporters in case the designated reporter is incorrect, but the system economic incentives are such that this type of behaviour is heavily discouraged. [1] https://www.augur.net/whitepaper.pdf https://www.augur.net/whitepaper.pdf