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

# Resolution Zones

Astaria markets enter a dedicated **Resolution Zone** as the underlying event approaches final settlement.

This mechanism exists because event-linked perpetuals do not behave like ordinary crypto perps near maturity. Prediction markets can collapse discretely to a terminal outcome of `0` or `1`.

## Stage 1: Leverage Compression

Before resolution, Astaria may reduce maximum leverage and require positions to become safer over time.

This can include:

* Lower maximum leverage
* Additional margin requirements
* Restrictions on opening new highly levered positions

## Stage 2: Trading Halt

During the final pre-resolution window, Astaria may halt trading in the perpetual market.

This can include:

* No new orders accepted
* Resting orders canceled
* Open interest recorded for settlement

## Stage 3: Cash Settlement

Once the event resolves, positions settle in cash based on the terminal outcome.

If the underlying market resolves to:

* `1`, the event settles as true
* `0`, the event settles as false

Settlement may remain subject to a dispute window or oracle finality process where applicable.

## Purpose

Resolution Zones are designed to reduce:

* Terminal-jump liquidation risk
* Disorderly execution in the final moments before resolution
* Market instability caused by discrete event settlement