Settlements occur when a player's Open Position gets closed. This can occur in two ways:
Closing Settlements occur when a player has an Open Position in a market, and they execute a wager that counteracts their Open Position. A Bought Position can be closed by executing a selling wager and a Sold Position can be closed by executing a buying wager.
Expiration Settlements occur when a player has an Open Position in a market that expires. Every market on the platform has an expiration. The expiration occurs at the end of the event (game, season, half, etc.) and will be detailed in the description of the market. At market expiration, every Open Position in that market goes through Expiration Settlement which results in the wagers being worth $100 if the result is YES and $0 if the result is NO.
Funds that are tied up in Open Positions get released upon Settlement assuming there are funds to return. Fees are taken only on Profitable Settlements in accordance with the STX Fee Schedule laid out in the Rewards Program.