Dispute
A dispute is a challenge to how a market is settled, typically triggered by ambiguity, conflicting sources, or edge cases.
Definition
A dispute is a formal process that challenges a market outcome or the application of the settlement rules. Disputes usually arise from ambiguous outcomes, unclear oracles, or unexpected edge cases.
Why it matters
Disputes create uncertainty and can lock funds. A predictable dispute process protects users and helps platforms maintain trust.
What a strong dispute process includes
• Clear timelines for filing and resolution.
• Transparent decision criteria tied to written rules.
• Defined governance, including who decides and how conflicts are handled.
• A fallback rule if the oracle is unavailable or contradictory.
Common pitfalls
Undefined governance: If the decision maker is unclear, outcomes feel arbitrary.
Moving goalposts: Changing interpretation after the fact undermines integrity.