docs/protocol/challengesv1 · testnet

Challenges

The judge proposes; it does not have the last word. A bonded, on-chain challenge game lets anyone contest the judge's reading, and pays them if they are right.

The challenge window

When the judge proposes an outcome, a 48-hour challenge window opens before it can finalize. Inside that window, anyone may challenge by posting a bond and a cited counter-reading of the committed evidence. Outside it, an unchallenged proposal finalizes as proposed.

Bonds & the arbiter

A challenge posts a bond, and the judge itself is bonded when it proposes. A challenge routes the market to an arbiter, which rules on the same committed evidence the judge was given, it cannot introduce new sources. The mechanism is UMA's optimistic-oracle pattern, narrowed to the frozen evidence plan.

Outcomes

Challenge upheld
The arbiter overturns the judge. The challenger's bond is returned, they take the slashed judge bond, and the market finalizes on the corrected outcome.
Challenge rejected
The arbiter agrees with the judge. The proposed outcome finalizes and the challenger forfeits their bond. Every rounding decision favours the pool, never the challenger.

No-shows

The state machine is bounded on both sides. If the judge never proposes within its window, a dead-man path finalizes the market INVALID so funds are never trapped. If a challenged market's arbiter never rules within its window, it likewise finalizes INVALID. Timeouts fail safe.

NOTEINVALID is a first-class outcome, not an error. A postponed event, unsupported evidence, or a stuck resolution all finalize INVALID and refund, nobody has to win for the market to close.
infofi© 2026 · infofi.trade