Docs/Protocol/Fund flows

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.

Fund flows | Assay Network Docs