Bonds and resolution rewards
Bonds make it costly to submit unsupported resolutions or disputes while allowing open participation in the oracle process.
Three bond types
Each market records three USDC payment-token bond amounts when it is initialized:
| Bond | Posted by | Purpose |
|---|---|---|
| Resolver bond | Resolution proposer | Backs the proposed YES, NO, or CANCELED result. |
| Disputer bond | Initial challenger | Backs a challenge during the first challenge period. |
| Escalator bond | Council-result challenger | Backs escalation during the second challenge period. |
These values are configurable and may differ. Documentation and interfaces should display the live per-market amounts rather than assuming fixed dollar values.
Custody and approval
Users approve the market's USDC payment token to the Oracle Bonds contract. Oracle Bonds holds the deposited amounts and returns or redirects them as the resolution process requires.
Returned and forfeited bonds
An undisputed successful resolver receives the resolver bond back. In disputed cases, the Oracle Council or final escalation result determines whether each relevant participant is punished.
When a participant is not punished, their recorded bond is returned. When a participant is punished, the relevant bond is sent to the protocol's configured safe-box address. A corrected result does not automatically require punishment; outcome selection and bond treatment are separate decisions.
Optional market reward
A market may be created with a separate resolution reward token and amount. Rewards are optional, and a reward amount of zero is valid.
When a non-canceled market settles, the reward generally follows the participant whose result is upheld by the final path: the original resolver when the original result stands, or the relevant successful initial disputer when the result changes. A canceled result sends the configured reward to the protocol safe box. An escalator should not assume that posting an escalation bond makes them the reward recipient.
When settlement happens
Bond and reward settlement can occur through an explicit settlement call or as part of the first successful redemption or canceled-market withdrawal. Later users do not settle the same bonds again.