Case Study

AI-Driven Dispute Resolution

for Prediction Markets

99% decision accuracy$0.033 cost per case<60s response time
Trusted by Leading Platforms
Polymarket
UMA Protocol
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Decision Accuracy
99%
correct dispute calls (GPT-4o-mini)
Detection Rate
92.9%
detection rate with open-source model
Accuracy Gain
+28pp
accuracy gain vs. random baselines
Cost Efficiency
<$0.04
cost per proposal

The Challenge

Prediction-market platforms such as UMA and Polymarket thrive on fast, bias-free resolution of event outcomes. Manual reviews were slow, expensive, and occasionally contentious—limiting liquidity and user trust.

Our Approach

Updoot built an Agentic Resolution Engine™, a self-auditing AI ensemble that:

  1. 1.Harvests multi-source evidence in real time.
  2. 2.Runs hybrid language-model juries to reach probabilistic verdicts.
  3. 3.Continuously A/B tests model variants in a closed-loop experimentation lab—deploying the best performer without exposing proprietary prompts or heuristics.

The result is near-perfect accuracy at micro-pricing, delivered in seconds.

Solution Architecture

1

Evidence Graph Builder

Cloud crawler that transforms raw web data into structured fact graphs.

2

Resolution Core

Ensemble of foundation models and lightweight heuristics orchestrated by a meta-controller; plugs in GPT-4o-mini or fully open-source LLMs.

3

Explainability Layer

Generates human-readable rationales & confidence scores for every verdict, enabling audit and governance.

Business Impact

  • Market Efficiency — faster verdicts increase settlement velocity, boosting trading volumes and fee revenue.
  • Cost Compression — automated reviews cost < 1% of manual arbitration.
  • Liquidity Magnet — trust scores and transparent rationales attract professional traders and deeper liquidity pools.
  • Scalability — system parses thousands of simultaneous markets across Politics, Sports, Crypto, and Science with no performance cliff.

What This Means for You

Whether you run a prediction market, an oracle network, or a compliance desk, our experimentation-driven AI resolution framework can cut operating costs while raising decision trust to institutional grade.

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