> ## Documentation Index
> Fetch the complete documentation index at: https://pond.dflow.net/llms.txt
> Use this file to discover all available pages before exploring further.

# Prediction Market Lifecycle

> How prediction markets progress from creation through settlement and finalization

A market’s status tells you whether users can trade, wait, or redeem, and nothing else.

Prediction markets move through a fixed lifecycle from creation to final settlement. A market’s **status** defines what actions users and builders can take at each stage.

Lifecycle order:

**`initialized` → `active` → `inactive` → `closed` → `determined` → `finalized`**

Markets may move forward through this sequence, and in some cases temporarily move backward from `inactive` to `active`.

<Info>
  The `inactive` status represents a paused state. A market can resume trading (`active`) or proceed toward closure (`closed`).
</Info>

## Market Statuses

### Initialized

The market exists but trading has not started.

* Trading is not allowed
* No positions can be opened or closed

Transitions:

* → `active` when trading opens

### Active

The market is open for trading. This is the **only** status that allows trades.

Users can:

* Open new positions
* Reduce or close existing positions

Builders can:

* Execute trades through the Trade API

Transitions:

* → `inactive` if trading is paused
* → `closed` when trading ends

<Warning>
  Only markets with `status: "active"` accept trades. Always check status before submitting orders.
</Warning>

### Inactive

Trading is paused.

* No trades can execute
* Existing positions remain unchanged

Transitions:

* → `active` if trading resumes
* → `closed` if trading ends permanently

### Closed

Trading has ended, but the outcome is not yet known.

* No trades allowed
* Outcome not yet determined
* Redemption not available

Transitions:

* → `determined` when the outcome is decided

### Determined

The outcome has been decided and written onchain.

* Trading remains disabled
* Winning outcome is known
* Redemption may be available, depending on funding

Transitions:

* → `finalized` once settlement completes

<Info>
  Markets with `status: "determined"` or `status: "finalized"` may allow redemption. Always check the `redemptionStatus` field to confirm availability.
</Info>

### Finalized

The market has fully completed its lifecycle.

* Trading permanently disabled
* Outcome finalized
* Redemption available for winning positions
* No further changes

Transitions:

* None (final state)

## Querying Market Status

Builders read market status through the Prediction Market Metadata API. The `status` field is included in all market responses.

See the [Markets API reference](/resources/metadata-api/markets/market) for details.

## Filtering by Status

Builders can filter markets by status across metadata endpoints:

* [**Markets API**](/resources/metadata-api/markets/markets): Filter markets directly by status
* [**Events API**](/resources/metadata-api/events/events): Filter events by the status of their markets
* [**Series API**](/resources/metadata-api/series/series): Filter series by the status of their markets

Valid status values:

`initialized`, `active`, `inactive`, `closed`, `determined`, `finalized`

## Trading and Redemption Rules

Trading rules by status:

* **Active**: Trading allowed
* **Initialized / Inactive / Closed**: Trading not allowed
* **Determined / Finalized**: Trading disabled

Redemption rules:

* Redemption may be available in `determined` and `finalized`
* Always confirm via `redemptionStatus` before submitting redemption requests

## TL;DR

* Markets move from creation → trading → closure → settlement
* Only active markets allow trades
* Redemption happens after the outcome is determined
* Always check status and redemptionStatus before acting