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Optimistic challenges

Understand bonded answers, challenge windows and escalation.

Reviewed .

The shape#

An optimistic resolution is a claim that stands unless somebody pays to say otherwise. Every step below has a bond, a window and a permissionless exit, so no stage can stall on a party who has gone quiet.

The bond is one fixed amount per deployment, between 50 and 500 USDG, set when the reporter is deployed and never changed.

Round one#

  1. Propose. Anyone posts an answer with linked evidence and the bond. This is possible only once the market's resolution deadline has passed and while it is unresolved.
  2. Challenge window — two hours. Anyone may dispute by posting the bond and their own linked evidence. There is no allowlist of challengers.
  3. Unchallenged. After the window, anyone may settle: the proposal is written as the answer and the proposer's bond is credited back.

Round two#

If the proposal was challenged:

  1. Second proposal — six hours. Anyone may post a second claim with twice the bond. If nobody does, anyone may settle the round as unanswered: the challenger is credited both bonds, no claim is accepted, and the market voids.
  2. Second challenge window — two hours. After it, anyone may settle round two:
    • if the second claim agrees with the first, the second proposer wins — the first proposer's bond comes back, the second proposer is credited three bonds, the challenger gets nothing;
    • if it disagrees, the challenger wins — the challenger is credited two bonds, the second proposer two, the first proposer nothing. The second claim is written as the answer either way.
  3. Escalation. Inside that window, anyone may dispute the second claim with twice the bond. There is no third round: the matter goes to the court.

The court#

  1. Ruling — 48 hours. Only the court may rule, and only inside 48 hours. The ruling names the final claim; the party whose round-one claim matches it is credited two bonds and the party whose round-two claim matches it is credited four, which is every bond that was posted.
  2. No ruling. After 48 hours, anyone may close the escalation: all six bonds go to a reserve and the market voids.

If the market is resolved by some other path while a proposal is open, anyone may abandon the proposal and every party gets their own bond back.

Payouts#

Every credit is pull-based: a party withdraws their own balance, with no ordinary template pause or expiry; permanent emergency retirement freezes withdrawals, so neither side can block the other. Bonds are pulled with a balance-delta check that refuses fee-on-transfer tokens.

What the interface shows#

The status machine shows a challenged market as DISPUTED with a visible clock, and a market whose second proposal was accepted after a challenge as AMENDED. Those two states are derived by the interface's read model from the reporter's stages; the escrow contract itself knows only open, settled and void. A contested resolution that renders as a named state with a running clock reads as a working process; the same event with no state reads as the site being broken. See Deadlines, disputes and refunds.