Fund flows
Three possible rulings, each with automatic fund distribution. Examples use a $250 brand stake (10% protocol fee → $225 net stake) and $125 challenger stake (50% minimum). Protocol fee is up to 10% on submission.
Valid -- Claim is accurate
- Brand: gets $225 back ($250 minus $25 protocol fee)
- Challenger: loses entire $125
- Claim marked as challenged and upheld
Invalid -- Claim is false
- Brand: loses entire $225 (slashed; net stake after fee)
- Challenger: gets $237.50 ($125 own stake + $112.50 reward, 50% of claim stake)
- Protocol treasury: $112.50
- Claim marked invalid
Inconclusive -- Not enough evidence
- Brand: loses $22.50 (10%), gets back $202.50
- Challenger: loses $12.50 (10%), gets back $112.50
- Claim status unchanged
All fund movements are handled by the escrow smart contract on Base. Once an arbiter rules, distribution is automatic and irreversible.