A stalemate occurs when:

A stalemate in wrestling is characterized by a situation where neither wrestler can improve their positioning or make progress towards scoring points. This scenario typically arises when both wrestlers are immobilized in such a way that they cannot advance their positions, effectively neutralizing each other's efforts. The situation must lack a potential for offensive maneuvers, resulting in a halt to the action on the mat.

In this context, a stalemate is called by the referee to reset the wrestlers to a neutral position, allowing them to engage again with the opportunity to score. This ensures that the match remains competitive and active, rather than allowing two wrestlers to stay in a static position where no scoring occurs.

The other provided options do not accurately define a stalemate. While having a dominant position may limit actions, it does not inherently create a stalemate if one wrestler can potentially score. Suggesting both wrestlers are to blame for inaction implies a lack of accountability that doesn’t align with the technical definition of a stalemate. Lastly, a defined time limit reaching does not correlate with a stalemate but more with match timing or scoring situations. Thus, the correct definition focuses solely on the inability of wrestlers to improve their position.