> For the complete documentation index, see [llms.txt](https://glimpse.gitbook.io/glimpse/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://glimpse.gitbook.io/glimpse/trading/how-do-rewards-and-settlement-work.md).

# How Do Rewards and Settlement Work?

When you purchase an Event Contract on Glimpse, you are taking a position on a specific future Bitcoin price outcome.

As market expectations change, the value of your position may rise or fall before settlement.

The value of your position can change before settlement as market expectations change. This gives you two ways to profit (outlined below). 

The market continuously updates as participants react to new information. This means contract prices can change over time, creating opportunities to realise gains before settlement or hold positions until the market resolves.

### 1. Sell Before Settlement

If the market becomes more confident in your selected outcome, the value of your contracts may increase.

For example:

* You buy a contract for 30 sats.
* New information causes more traders to believe that outcome is likely.
* The contract price rises to 50 sats.

You can sell your position before settlement and realize a profit.

Likewise, if the market moves against your position, the contract price may fall and you may choose to sell early to limit losses.

***

### 2. Hold Until Settlement

You may also choose to hold your contracts until the market resolves.

At settlement, the final Bitcoin price is determined according to the market's settlement rules.

Contracts associated with the correct settlement range become winning contracts and pay out their full value.

Contracts associated with all other outcomes expire worthless.

***

### What Happens When a Market Resolves?

When the settlement time is reached:

1. The final Bitcoin settlement price is determined.
2. The winning price range is identified.
3. Winning contracts are paid out automatically.
4. Losing contracts expire and are removed from circulation.
5. Any winnings are credited directly to your Glimpse wallet.

No action is required from participants after settlement.

***

### Example

Suppose a contract pays out if Bitcoin settles between $120,000 and $125,000.

#### Before Settlement

You purchase 10 contracts at 40 sats each.

* Total Cost: 400 sats
* Maximum Payout: 1,000 sats

#### Outcome A: Correct Forecast

Bitcoin settles within the selected range.

Your contracts pay out their full value.

* Total Payout: 1,000 sats
* Profit: 600 sats

#### Outcome B: Incorrect Forecast

Bitcoin settles outside the selected range.

Your contracts expire worthless.

* Total Payout: 0 sats
* Loss: 400 sats

***

### Important

Contract prices reflect current market expectations, not certainty.

A contract trading at a higher price indicates that the market currently considers that outcome more likely, but no outcome is guaranteed.

As new information enters the market, participants update their positions and prices adjust accordingly.

This continuous repricing is what allows Glimpse to generate a live forecast of market expectations.